David Brooks is an Ass Part the 9874

or whatever number of columns he’s squeezed out over the years.

Illuminations

Matt Taibbi writes, in response to a recent co-column by Gail Collins and Davy Brooks:

Gail Collins: I’m sorry, when the difference is one weensy basket, I’d say Duke won neither by privilege nor hard work but by sheer luck. But don’t let me interrupt your thought here. I detect the subtle and skillful transition to a larger non-sport point.

David Brooks: Yes. I was going to say that for the first time in human history, rich people work longer hours than middle class or poor people. How do you construct a rich versus poor narrative when the rich are more industrious

[http://opinionator.blogs.nytimes.com/2010/04/07/redefining-what-it-means-to-work-hard]

I had to read this thing twice before it registered that Brooks was actually saying that he was rooting for the rich against the poor. If he keeps this up, he’s going to make his way into the Guinness Book for having extended his tongue at least a foot and a half farther up the ass of the Times’s Upper East Side readership than any previous pundit in journalistic history. But then you come to this last line of his, in which he claims that “for the first time in history, rich people work longer hours than middle class or poor people,” and you find yourself almost speechless.

I would give just about anything to sit David Brooks down in front of some single mother somewhere who’s pulling two shitty minimum-wage jobs just to be able to afford a pair of $19 Mossimo sneakers at Target for her kid, and have him tell her, with a straight face, that her main problem is that she doesn’t work as hard as Jamie Dimon.

Only a person who has never actually held a real job could say something like this. There is, of course, a huge difference between working 80 hours a week in a profession that you love and which promises you vast financial rewards, and working 80 hours a week digging ditches for a septic-tank company, or listening to impatient assholes scream at you at some airport ticket counter all day long, or even teaching disinterested, uncontrollable kids in some crappy school district with metal detectors on every door.

Most of the work in this world completely sucks balls and the only reward most people get for their work is just barely enough money to survive, if that.

[Click to continue reading Brooks: Let Them Eat Work – Matt Taibbi – Taibblog – True/Slant]

Basically, David Brooks is an ass, but I think we knew that. Keep reading for a laugh at Mr. Brooks’ expense.

The App Store As Democratic

Democratic with a small d, as in the sense of Thomas Jefferson’s small farmers who are now one or two person mobile computer application programming businesses:

The App Store must rank among the most carefully policed software platforms in history. Every single application has to be approved by Apple before it can be offered to consumers, and all software purchases are routed through Apple’s cash register. Most of the development tools are created inside Apple, in conditions of C.I.A.-level secrecy. Next to the iPhone platform, Microsoft’s Windows platform looks like a Berkeley commune from the late 60s.

And yet, by just about any measure, the iPhone software platform has been, out of the gate, the most innovative in the history of computing. More than 150,000 applications have been created for it in less than two years, transforming the iPhone into an e-book reader, a flight control deck, a musical instrument, a physician’s companion, a dictation device and countless other things that were impossible just 24 months ago.

Perhaps more impressively, the iPhone has been a boon for small developers. As of now, more than half the top-grossing iPad apps were created by small shops.

Those of us who have championed open platforms cannot ignore these facts

[Click to continue reading Everybody’s Business – How Apple Has Rethought a Gospel of the Web – NYTimes.com]

Don’t forget a digital Lomo camera, like Hipstamatic, or even a virtual darkroom – SwankoLab1

As far as I know2 there has been zero instances of malware or other malicious applications released on the Apple iPhone store. Not a few, zero. Every single app has been vetted by some Apple employee, sometimes causing great gnashing of teeth on the part of the developer, but for an end user, that isn’t really as important as remaining assured that the app you are about download is safe.

Behind the Red Door

And although I have not done any iPhone programming myself3, this rings true as well:

The fact that the iPhone platform runs exclusively on Apple hardware helps developers innovate, because it means they have a finite number of hardware configurations to surmount. Developers building apps for, say, Windows Mobile have to create programs that work on hundreds of different devices, each with its own set of hardware features. But a developer who wants to build a game that uses an accelerometer for control, for example, knows that every iPhone OS device in the world contains an accelerometer.

The maniacal attention to detail and usability in Apple’s consumer products also applies to its software development platforms. However much developers might complain about the torturous app approval process or the sharing of revenue, most will tell you that the iPhone development tools are a delight.

Apple took a lot of heat waiting a year after the introduction of the first-generation iPhone to open the App Store. At the time, it contended that it wanted to ensure that the development tools it shipped met its standards. The success of the App Store suggests that this patience was well worth it.

Footnotes:
  1. more on that later []
  2. and I follow this stuff pretty closely []
  3. just worked on RFPs for development of apps for a client []

Chase Happily Conducts War on Nature

Banks are corporate villains, part the 3243rd.

Loneliness is an ATM

Unlike virtually all of its competitors, JPMorgan Chase steeled itself early for the collapse of the subprime market and emerged from the rubble of the global financial meltdown with both its balance sheet and reputation intact. But the storied firm stands alone among its Wall Street rivals in another area, too. JPMorgan backstops one of the most destructive mining practices in the world: mountaintop removal coal mining. And it continues to do so even as other major banks have cut ties to this practice.

“Chase is the single largest remaining player in this game,” says Scott Edwards, advocacy director for the Waterkeeper Alliance, an environmental advocacy group comprised of lawyers, scientists, and activists, among others. “They just absolutely refuse to take responsibility for their role in this absolutely devastating industry.”

Mountaintop removal (MTR) mining, focused in Appalachian states like West Virginia, Tennessee, and Kentucky, involves deforesting huge swaths of land and blasting the summits off of mountains to expose the black veins of coal underneath. The waste and rubble from the demolition is then dumped into nearby rivers and streams, burying local water sources in toxic byproducts, choking off tributaries that feed into larger rivers, and wiping out plants and wildlife, according to numerous scientific studies. Despite the mining industry’s claims, there are no successful ways to mitigate the effects of MTR, according to Margaret Palmer of the University of Maryland Center for Environmental Science. The effects on the nearby environment, she says, are long lasting and often irreversible.

[Click to continue reading JPMorgan’s War on Nature | Mother Jones]

Satanic Gift

Chase is happy to make some short-term profits at the expense of all our lives

Over the past 17 years, JPMorgan Chase has helped to underwrite nearly 20 bond or loan deals, worth a combined $8.5 trillion, for some of the biggest players in the MTR mining business, according to data from Bloomberg. Other large banks have either halted financing companies engaging in the practice outright or signaled their intent to do so. In December 2008, for instance, Bank of America publicly announced plans to “phase out financing of companies whose predominant method of extracting coal is through mountain top removal.” Wells Fargo has cut ties with coal giant Massey Energy. And a Credit Suisse official says the bank has a “global mining policy” that ensures “we explicitly do not finance the extraction of coal in a mountaintop removal setting.” But JPMorgan continues to back the practice.

By underwriting MTR, JPMorgan ties itself to some of the nation’s biggest polluters. Take Massey Energy, which leads the nation in MTR mining. In 2008, the company extracted more than 21 million tons of coal using mountaintop removal mining, according to opensourcecoal.org, an online database for coal production statistics. That same year, JPMorgan acted as lead manager on a $690 million bond offering by Massey, according to financial records.

Judge Invalidates Human Gene Patent

Good! Stupid that genes have ever been patented. Science may have discovered specific genes, but they didn’t create them from scratch. Why should evolutionary processes be privatized by large companies?

DNA Bricks

A federal judge on Monday struck down patents on two genes linked to breast and ovarian cancer. The decision, if upheld, could throw into doubt the patents covering thousands of human genes and reshape the law of intellectual property
Enlarge This Image

The American Civil Liberties Union and the Public Patent Foundation at the Benjamin N. Cardozo School of Law in New York joined with individual patients and medical organizations to challenge the patents last May: they argued that genes, products of nature, fall outside of the realm of things that can be patented. The patents, they argued, stifle research and innovation and limit testing options.

Myriad Genetics, the company that holds the patents with the University of Utah Research Foundation, asked the court to dismiss the case, claiming that the work of isolating the DNA from the body transforms it and makes it patentable. Such patents, it said, have been granted for decades; the Supreme Court upheld patents on living organisms in 1980. In fact, many in the patent field had predicted the courts would throw out the suit.

Judge Sweet, however, ruled that the patents were “improperly granted” because they involved a “law of nature.” He said that many critics of gene patents considered the idea that isolating a gene made it patentable “a ‘lawyer’s trick’ that circumvents the prohibition on the direct patenting of the DNA in our bodies but which, in practice, reaches the same result.”

The case could have far-reaching implications. About 20 percent of human genes have been patented, and multibillion-dollar industries have been built atop the intellectual property rights that the patents grant.

[Click to continue reading Judge Invalidates Human Gene Patent – NYTimes.com]

Patents are well and good, in some instances, but not every step that science makes should be controlled by corporations, and exploited for profit.

Keep Your Financial Records No Longer Than You Must

Easier said than done, we are buried in mounds of paper from years past. Shredding documents takes effort, and time, and it is usually easier to box papers up, and stash them somewhere. Still, there is compelling reasons to act, and clean up.

Darth Vader

According to Catherine M. Williams, vice president for financial literacy at the credit counseling firm Money Management International, there are two main reasons to keep financial records. “It’s either for backup to a tax issue or for proof that you did something like make a payment,” Ms. Williams said.

The Internal Revenue Service requires that individuals be able to produce records proving any income, deductions or credit claimed for at least three years from the date of a return, the statute of limitations for how long the I.R.S. has to assess additional tax if all income was reported correctly. In addition, the I.R.S. requires that individuals be able to produce such records for six years if they fail to report income that is more than 25 percent of their gross income. There is no statute of limitation for failure to file or tax fraud.

Therefore, experts generally recommend keeping anything that verifies the information in your tax return for at least six to seven years. “My recommendation would be never throw away copies of your tax returns and checks made out to the government — anything else, I would say keep for at least six years,” said Jude Coard, a tax partner at accounting firm Berdon L.L.P.

[Click to continue reading Keep Your Financial Records No Longer Than You Must – NYTimes.com]

Maybe we need an intern, one that can be trusted to make judgement calls about sensitive financial information.

Caterpillar Lying about Health Care

Caterpillar, that bastion of Republican largesse1, lying about health care? How could that be? Did John Boehner write the letter? or his staff?

Winch

Caterpillar Inc. of Peoria has jumped to the forefront of manufacturing companies complaining about the cost of the federal health care overhaul. On March 18 the company sent a letter to Speaker Nancy Pelosi and Representative John A. Boehner, the Republican leader, saying mandated changes would cost it “$100 million in the first year alone.”

According to a regulatory filing by the company last week, the $100 million figure is Caterpillar’s estimated total cost for as long as the newly enacted Patient Protection and Affordable Care Act remains in effect. And the $100 million charge is an accounting change, a noncash cost that has no affect on the company’s operations.

In addition, the $100 million figure does not arise from changes to decades-long practices at Caterpillar. Rather, it comes about because the new law removes a tax break codified in 2003.

No company sneezes at the elimination of a $100 million tax break. But in 2008, Caterpillar had $51 billion in sales, and profits topped $3.5 billion for the third straight year. The projected profits for 2010 are a relatively weak $1.56 billion, and the $100 million tax charge would mean an additional 6 percent reduction.

[Click to continue reading Chicago News Cooperative – The Pulse – Scrutinizing the Numbers in Caterpillar’s Complaint – NYTimes.com]

Remove

So really Caterpillar’s complaint boils down to whining about a removal of a tax break enacted when Republicans controlled the Congress and the White House. Cry me a river…

Footnotes:
  1. 2010 contributions- 24% to Democrats, 76% to Republicans, 2004 contributions -11% to Democrats, 89% to Republicans []

Classmates.com Settles Lawsuit

Thankfully, the ubiquitous Classmates.com banner ads are less prevalent than they once were. I never had a weak moment and signed up, but some did, and some got compensated for their blinding loneliness.

myspace

Classmates.com has agreed to refund nearly $10 million to users who were told that long-lost school chums were looking at their profiles, only to find, once they’d ponied up a subscription fee, that no one they knew was looking for them at all.

The proposed settlement would end a lawsuit filed in November 2008 on behalf of Classmates.com user Anthony Michaels who sued after he spent $15 to upgrade to a Gold Membership at Classmates.com, one of the net’s original social networking sites. But that fee was a rip-off, he said.

“Upon logging into his Gold Membership profile in order to view the classmate contacts … Plaintiff discovered that in fact, no former classmate of his had tried to contact him or view his profile,” the complaint read. “Of those www.classmates.com users who were characterized … as members who viewed Plaintiff’s profile, none were former classmates of Plaintiff or persons familiar with or known to Plaintiff for that matter.”

While Classmates.com denies it engaged in any deception, it agreed to pay up to $9.5 million to the estimated 3.16 million people who signed up for the service after seeing ads and e-mails encouraging users to upgrade in order to see what members had been looking at their profiles. Each will be offered $3 in cash or a $2 certificate towards future membership.

[Click to continue reading Lonely Classmates.com Users Get $9.5M in Suit]

Don't Even Bother

The real winners, of course, are the class action lawyers1, who as always get the major portion of the settlement. Most members of the class get $3, if you were a primary defendant, you get $2,500, but the attorneys get $1,300,000. Pretty much par for the course.

update: see here for more details, but

But this week, the U.S. Ninth Circuit Court of Appeals put a damper on the business model of legal extortion by trial lawyers filing frivolous lawsuits.

Frank has become the proverbial fly in the trial lawyers’ ointment, objecting again and again to bogus nuisance settlements that make up the bread and butter for some. In January, his objection helped convince a court to throw out a settlement between Classmates.com(the online social site with the annoying popup ads) and some users who felt they had been duped into signing up.

In that case — whose merits appear much stronger than the Bluetooth case — the lawyers had negotiated $117,000 for the aggrieved class, and a million-plus-dollar fee for themselves.

Frank’s organization, a nonprofit 501(c)(3), is currently fighting settlements that are overly generous to trial lawyers in cases against Kellogg, Volkswagen and Toys “R” Us, among others.

Footnotes:
  1. note: this link to the PDF is currently not working []

Kiva loan number 23

– Liza Kongato Chirichir from Kenya is repaying a Kiva loan

23

Location: Kabarnet, Kenya

Repayment Term: 11 months (more info)

Activity: Farming   Repayment Schedule: Monthly

Loan Use: To purchase farm inputs and pay school fees

Liza Chirichir is a 56-year-old lady who is married to Mr. Joseph Chirichir. They have been blessed with nine children: Hilda (26 years), Jeptui (30 years), Kimoi (28 years), Henry (26 years), Winny (24 years; in university), Edwin (22 years; in university), Robert (20 years; in university), Kipngetich (17 years; in high school) and Gideon(12 years; in primary school).

Liza is a farmer and she has been farming for eight years now. Her farming business generates a profit of Ksh 5,000 per month. She has no other sources of income. Liza’s business is situated in Timboiywo where most of her customers are residents.

Liza has obtained a loan of Ksh 80,000 from KADET. Ksh 50,000 of this loan will be used for farming and the balance will be used to pay school fees. She has never borrowed from another financial institution. If this loan boosts her business she will use the extra profit to pay school fees for her children.

Liza dreams of having a good dairy cow and she describes herself as hardworking.

(click to continue reading Kiva – Liza Kongato Chirichir from Kenya is repaying a Kiva loan.)

 

Country: Kenya Avg Annual Income: $1,445 Currency: Kenya Shillings (KES) Exchange Rate: 76.4932 KES = 1 USD

 


View Larger Map

Kiva loan number Five

Kiva – Saidu Rahim Bangura from Sierra Leone is repaying

Location: Freetown, Sierra Leone

Repayment Term: 12 months (more info)

Activity: Pharmacy

Repayment Schedule: Monthly

Loan Use: To purchase drugs

Saidu Rahim Bangura is 38 years old and owns a drug store at the centre part of town. He is married with one child and three dependents who are his wife’s sisters. He started his business with a small table in which he sells his drugs and has now rented a store. His wife usually helps in the store when he is not around hence Saidu is seeking for a loan to purchase more drugs for his store and eventually use proceeds from his business to care for his family.

Country: Sierra Leone Avg Annual Income: $903

(click to continue reading Kiva – Saidu Rahim Bangura from Sierra Leone is repaying a Kiva loan.)

 

Kiva Loan 22

Tarumandy Poty Group from Paraguay has fully repaid a Kiva loan


View Larger Map

Location: Luque, Paraguay

Repayment Term: 6 months (more info)

Activity: Crafts

Repayment Schedule: Monthly

Loan Use: Purchase materials for making hats

The contact responsible for starting this present committee is Sra. Hilaria Duarte, who reports to the program advisor of Fundación Paraguaya. She organized and invited her neighbors to join the Committee of Women Entrepreneurs Program.

All of them work with great hope of improving their lives. Such is the case of Sra. Rocío Carolina Lugo, who produces handmade hats. She will invest the money in the purchase of materials needed for her work such as “karanday” (a plant fiber native to Paraguay), leather, scissors, and other items. This will allow her to offer a wider variety of quality hats to her customers.

Translated from Spanish by Ronan Reodica, Kiva Volunteer

El contacto para el inicio del presente comité fue la señora Hilaria Duarte quien se informa del programa con la asesora de la Fundación Paraguaya, organizaron e invitaron a sus vecinas para formar parte del programa Comité de Mujeres Emprendedoras.

Todas trabajan con mucha de esperanza de mejorar su vida así como la señora Rocío Carolina Lugo se dedica a la artesanía en sombrero de barandal, invirtió el dinero en la compra de elementos para su trabajo ( karanday, cueri, tijeras, etc.), logrando de ese modo ofrecer mayor variedad y calidad de sombreros a su clientela.

(click to continue reading Kiva – Tarumandy Poty Group from Paraguay has fully repaid a Kiva loan.)

Country: Paraguay
Avg Annual Income: $4,555
Currency: Paraguay Guarani (PYG)
Exchange Rate: 4,665.4795 PYG = 1 USD

Maria Pinto liquidating boutique

Local high profile designed Maria Pinto (we’ve discussed her store before) is closing down her boutique, located at 135 N. Jefferson St in the West Loop.

Maria Pinto

All of the praise for Michelle Obama’s grape- and tomato-colored sheaths couldn’t bear enough fruit to spare their Chicago-based designer — Maria Pinto — from the recession’s blight.

Pinto, whose work has been worn by not only the country’s first lady but also queen-of-talk Oprah Winfrey, will open her West Loop boutique for five final days starting Tuesday. Her daywear, eveningwear, wraps and one-of-a-kind accessories will be liquidated at 50 percent to 70 percent off their original prices.

In January, Pinto arrived at the decision to close her shop and cease wholesale operations, she said. A fashion designer for 20 years who previously worked for Geoffrey Beene, Pinto launched her own line in 1991. Bergdorf Goodman, Saks Fifth Avenue, Barneys New York and Takashimaya in New York, as well as high-end boutiques across the country, carried her pieces.

[Click to continue reading Maria Pinto: Chicago designer Maria Pinto liquidating boutique – chicagotribune.com]

I’ve glanced at her store window a few times, and I didn’t see any item that entranced me. Perhaps her best work was customized to particular customers, and not for display on a clothing rack.

And this statement mostly sounds true:

“In the general scheme of things, our store was doing very well. But our other retailers are paring down their open-to-buys (merchandise purchases) and looking to build sales through trunk shows,” she said. “It’s difficult because it makes your forecasted cash flow challenging. You’re waiting for the show to happen, waiting for things to happen. Before, the stores were committed to larger inventories.”

Any avid shopper can see the shift, she said.

“Walk through the stores and see how the stores are buying very differently. Saks had blast-out sales going in November 2008. November this year, there was very little in stores that was on sale. What was left was bottom-of-the-barrel. Everyone is having to reposition themselves.”

For 2009, total U.S. apparel sales fell 5.2 percent to $188.5 billion, market research firm NPD Group reported last month.

Kiva Loan Number 21

Nueva Generacion Iii Group from Peru has fully repaid a Kiva loan

Location: Cusco, Peru   Repayment Term: 6 months (more info)

Activity: Weaving   Repayment Schedule: Monthly

Loan Use: Purchase wool, thread, elastic, buttons, and other items

The Communal Bank “Nueva Generacion III” (New Generation III) is currently in its thirteenth loan cycle and consists of twelve hardworking and enterprising individuals who view each moment as an opportunity to get ahead. Through their daily efforts, they are able to provide a better future for their children. The members of the Communal Bank live in the Province and Department of Cusco. Cusco is a city known for its archaeological sites, its Historical Center, its landscapes, and its history for being one of the most enchanting cities in the southern part of the country.

The business activities of the members include selling dry goods, snacks, groceries, food, or providing transportation services. The members indicate that the Communal Bank has participated in numerous loan cycles and that they are happy and satisfied with the loan services, savings, and training classes. One ongoing aspect of the Communal Bank that is of value is the group savings account that opens the possibility for building up assets, which is what this service provides.

Rosa is a member of the New Generation Communal Bank. She and the other members meet every 30 days at the central office of Asociación Arariwa. Rosa is 29 years old, in a common law marriage, and has three children (Liz, Sheyla, and Santos Ollantay). She wakes up very early to attend to her family, such as preparing breakfast for her children and getting them ready for school. After taking care of her household activities, she engages in her business of making woolen clothing by hand. For example, she weaves sweaters for newborn infants. Rosa has been in this business for 15 years and has done very well thanks to the effort she puts into her work. She inherited this business from her parents. Rosa needs a loan to buy balls of wool, thread, elastic, buttons, and other items.

The members, in general, are grateful for this opportunity and commit to making their payments on time.

Translated from Spanish by Ronan Reodica, Kiva Volunteer

El banco comunal “NUEVA GENERACION III”, actualmente se encuentra en el XIII ciclo y esta conformado por 12 personas trabajadoras y emprendedoras que buscan a cada momento las oportunidades para salir adelante y con su esfuerzo diario entregar un mejor futuro a sus hijos, es un banco comunal conformado por socios que viven en la distrito del Cusco la provincia del Cusco. Cusco es una cuidad que se caracteriza por su centros arqueológicos, centro histórico, sus paisajes, su historia siendo una ciudad encantadora de la Región Sur del país.

Las actividades económicas de los socios a las que se dedican son el comercio como por ejemplo, venta productos secos, venta de alimentos, venta de comestibles y venta de comida y otros brindan servicio de transportes. El banco comunal tiene varios ciclos de funcionamiento, como manifiestan las socias, se encuentran contentas y satisfechas con los servicios de crédito, ahorro y capacitación, por el tiempo de permanencia en el banco comunal un aspecto de valoración es el ahorro por la posibilidad de capitalización que les brinda este servicio.

La socia Rosa forma parte del banco comunal la “Nueva Generación” y las reuniones de los socios son cada treinta días en la oficina central de la Asociación Arariwa. Rosa tiene 29 años de edad, es conviviente y tiene tres hijos (Liz, Sheyla y Santos Ollantay), ella se levanta muy temprano para atender a su familia como por ejemplo prepara desayuno para sus hijos y los envía al colegio, después hacer sus actividades del hogar su actividad comercial es la confección de ropa de lana de forma manual como por ejemplo, ella confecciona chompas para bebes recién nacidos. Ya son 15 años que se dedica al negocio y le ha ido muy bien gracias al empeño que pone en su trabajo, ella heredó el trabajo de sus padres. Rosa requiere el préstamo para comprar ovillos de lana, hilos, elásticos, botones y muchas cosas más.

Los socios en general agradecen la oportunidad brindada y se comprometen a cumplir con el pago de sus diferentes cuotas en los plazos establecidos.

(click to continue reading Kiva – Nueva Generacion Iii Group from Peru has fully repaid a Kiva loan.)

Country: Peru Avg Annual Income: $6,715 Currency: Peru Nuevos Soles (PEN) Exchange Rate: 2.8471 PEN = 1 USD

TIF Slush Fund

Mayor Daley’s budget is in deficit, municipal projects don’t get funded, schools don’t get funded, yet developers can get as much TIF money1 as they need, no matter what. No consequences, no strings. Just plain ole corporate welfare.

Half Done

A city panel approved another major increase in financial assistance for planned Loop apartment development that has struggled to get off the ground because of rising costs and the tough lending climate.

The Community Development Commission signed off Tuesday on a $34-million tax-increment financing subsidy to help pay for the conversion of a vintage Loop office tower at 188 W. Randolph St. into a 310-unit apartment building.

That’s more than four times the $8 million in TIF funds the city initially approved for the development back in 2006, when its total cost was estimated at $79 million.

But the projected cost had soared to $139 million in 2008, and the project’s developer, Village Green Cos., went back for more. The city complied by hiking the subsidy to $20 million.

[Click to continue reading Loop project poised to get another big TIF boost – Chicago Real Estate Daily]

Via Lynn Becker, who adds:

When, in 2006, a developer announced plans to rehab Vitzhum & Burns Steuben Club Building at 188 W. Randolph, an $8 million dollars contribution from the massive Central Loop TIF was going to kick in about 10% of the $79 million cost.

But wait – there’s more! The project is also getting $40 million dollars in tax-exempt bonds from the state, plus $37 million in tax credits. You, lucky taxpayer, kick in almost half of the project cost and the private developer gets the building. Socialism, Chicago style.

When Draconian cutbacks are effecting everything in Chicago from the CTA, to the schools, to 4th of July Fireworks, the city is diverting another $26 million in tax revenues to an economically unsustainable development.

[Click to continue reading ArchitectureChicago PLUS: Welfare Queen]

Really disgusting. The Vitzthum & Burns Steuben Club Building is not a cookie-cutter square box, but it isn’t in the upper echelon of Chicago architecture either.

from a CBS Chicago report (presumedly based on the press release from Village Green Companies)

The Community Development Commission approved a plan to redevelop the vacant and historic Randolph Tower at 188 W. Randolph St. into 310 apartments, retail and commercial space, according to a release from the CDC.

The action recommends the designation of Village Green Companies as the developer for the proposed $145 million renovation.

Plans call for the mixed-use building, formerly known as the Steuben Club Building, to be converted into 168 studios, 98 one-bedroom and 44 two-bedroom units, the release said. Sixty-two of the residential units will be made affordable to households at or below 50 percent of median area income.

Village Green bought the 45-story office building out of bankruptcy in 2005 and will convert the 80-year-old structure into apartments. Plans also include 9,500 square feet of ground floor restaurant and retail space. Village Green will occupy 11,400 square feet on the second floor as its Chicago regional office.

Amenities will include a fitness center, swimming pool and spa. A social club will be located on the 38th and 39th floors, offering 360-degree views of the skyline and Lake Michigan, the release said.

The Gothic-style building will have extensive work done to preserve its historic terra cotta façade and other ornamental details and a gut rehabilitation of the interior.

The CDC also approved a redevelopment plan for the proposed Randolph/Wells tax increment financing district. Creation of the district will support the renovation of Randolph Tower and help redevelop other underutilized and vacant buildings in the area.

[Click to continue reading
City OK’s Rehab Of Loop Tower, Home For Teen Mothers On West Side – cbs2chicago.com
]

Hey, build for the future, right? Demand for new condos might be low now, but in twenty years…

Via EveryBlock’s hyperlocal news

Footnotes:
  1. tax increment financing []

Walk Away Guilt Free

Walk away from your negative equity house. Wow, that’s some harsh advice. Luckily I’m not in this situation, but I know some people who are. As Brett Arends writes, the economy is amoral, banks are not your friends, why should you be theirs?

Can't Get Out of Here

Millions of Americans are now deeply underwater on their mortgage. If you’re among them, you need to stop living in a dream world and give serious thought to walking away from the debt.

No, you shouldn’t feel bad about it, and you shouldn’t feel guilty. The lenders would do the same to you—in a heartbeat. You need to put yourself and your family’s finances first.

How widespread is this? More than 11 million families are in “negative equity”—that is, they owe more on their home than it is worth—according to a report out this week by FirstAmerican Core Logic, a real-estate data firm. That’s a quarter of all families with mortgages. And for more than five million of those borrowers, the crisis is extreme: They are more than 25% underwater—the equivalent of having a $100,000 loan on a property now worth just $75,000 or less. That’s true for a fifth of mortgage holders in California, nearly a third in Florida and an incredible 50% in Nevada.

[Click to continue reading ROI: When It’s OK to Walk Away From Your Home – WSJ.com]

If you are 25% underwater, your home would have to raise 33% in value before you break even. What’s the time frame of that? Will your home value increase 3% a year, every year? So when do the math to see when your equity is no longer “negative”, it isn’t pretty.

As far as legal consequences, there might not be any…

Are you worried about the legal consequences of walking away? Certainly, you should check with a lawyer before doing anything, but the consequences will probably be more limited than you think.

In “non-recourse” states, the mortgage lender may have no right to come after you for any shortfall. They may have no option but to take the home, sell it and eat the loss. According to a survey last year by the Federal Reserve Bank of Richmond, such states include negative-equity hot spots California and Arizona. Even in “recourse” states, lenders may have limited ability to come after you. Often they’d have to jump a lot of legal hurdles, and it’s just not worth it for them. They’re swamped with cases anyway.

“In my experience, right now they’re not really going after anyone,” says Richard Nemeth, a bankruptcy attorney in Cleveland. “They just don’t have the resources.”

So what are the non-recourse states, anyway?

Here’s one list, but I’d make sure to discuss options with a lawyer or two before doing any drastic deeds.

Alaska
Arizona
Arkansas
California
Colorado
District of Columbia (Washington DC)
Georgia
Hawaii
Idaho
Mississippi
Missouri
Montana (if non-judicial foreclosure is used)
Nevada – (lender can get a deficiency judgment)
New Hampshire
Oregon
Tennessee
Texas (lender can get a deficiency judgment)
Virginia
Washington
West Virginia

The following states allow non-judicial foreclosure:

Michigan
Minnesota
North Carolina
Rhode Island
South Dakota
Utah
Wyoming

[Click to continue reading WikiAnswers – Which states are non-recourse states for mortgage debt]

How Google’s Algorithm Rules the Web

Interesting reading about Google’s search algorithm team written by Steven Levy, though as of this moment, this particular search is not as described:

Even the Bingers confess that, when it comes to the simple task of taking a search term and returning relevant results, Google is still miles ahead. But they also think that if they can come up with a few areas where Bing excels, people will get used to tapping a different search engine for some kinds of queries. “The algorithm is extremely important in search, but it’s not the only thing,” says Brian MacDonald, Microsoft’s VP of core search. “You buy a car for reasons beyond just the engine.”

Google’s response can be summed up in four words: mike siwek lawyer mi.

Amit Singhal types that koan into his company’s search box. Singhal, a gentle man in his forties, is a Google Fellow, an honorific bestowed upon him four years ago to reward his rewrite of the search engine in 2001. He jabs the Enter key. In a time span best measured in a hummingbird’s wing-flaps, a page of links appears. The top result connects to a listing for an attorney named Michael Siwek in Grand Rapids, Michigan. It’s a fairly innocuous search — the kind that Google’s servers handle billions of times a day — but it is deceptively complicated. Type those same words into Bing, for instance, and the first result is a page about the NFL draft that includes safety Lawyer Milloy. Several pages into the results, there’s no direct referral to Siwek.

The comparison demonstrates the power, even intelligence, of Google’s algorithm, honed over countless iterations. It possesses the seemingly magical ability to interpret searchers’ requests — no matter how awkward or misspelled. Google refers to that ability as search quality, and for years the company has closely guarded the process by which it delivers such accurate results. But now I am sitting with Singhal in the search giant’s Building 43, where the core search team works, because Google has offered to give me an unprecedented look at just how it attains search quality. The subtext is clear: You may think the algorithm is little more than an engine, but wait until you get under the hood and see what this baby can really do.

[From Exclusive: How Google’s Algorithm Rules the Web | Magazine]

Probably because Bing has now indexed the Wired article and various links to it, if you search Bing for “mike siwek lawyer mi“, you currently do get relevant results, well, results of lawyers in Grand Rapids anyway1. Google still gives a better search result most of the time, I haven’t switched to using a different search engine.


Bing search results (click to embiggen, or do the search yourself)


Google search results (click to embiggen, or do the search yourself)

Quite interesting article though, worth reading more

For instance:

The search engine currently uses more than 200 signals to help rank its results.

Google’s engineers have discovered that some of the most important signals can come from Google itself. PageRank has been celebrated as instituting a measure of populism into search engines: the democracy of millions of people deciding what to link to on the Web. But Singhal notes that the engineers in Building 43 are exploiting another democracy — the hundreds of millions who search on Google. The data people generate when they search — what results they click on, what words they replace in the query when they’re unsatisfied, how their queries match with their physical locations — turns out to be an invaluable resource in discovering new signals and improving the relevance of results. The most direct example of this process is what Google calls personalized search — an opt-in feature that uses someone’s search history and location as signals to determine what kind of results they’ll find useful. (This applies only to those who sign into Google before they search.) But more generally, Google has used its huge mass of collected data to bolster its algorithm with an amazingly deep knowledge base that helps interpret the complex intent of cryptic queries.

Take, for instance, the way Google’s engine learns which words are synonyms. “We discovered a nifty thing very early on,” Singhal says. “People change words in their queries. So someone would say, ‘pictures of dogs,’ and then they’d say, ‘pictures of puppies.’ So that told us that maybe ‘dogs’ and ‘puppies’ were interchangeable. We also learned that when you boil water, it’s hot water. We were relearning semantics from humans, and that was a great advance.”

But there were obstacles. Google’s synonym system understood that a dog was similar to a puppy and that boiling water was hot. But it also concluded that a hot dog was the same as a boiling puppy. The problem was fixed in late 2002 by a breakthrough based on philosopher Ludwig Wittgenstein’s theories about how words are defined by context. As Google crawled and archived billions of documents and Web pages, it analyzed what words were close to each other. “Hot dog” would be found in searches that also contained “bread” and “mustard” and “baseball games” — not poached pooches. That helped the algorithm understand what “hot dog” — and millions of other terms — meant. “Today, if you type ‘Gandhi bio,’ we know that bio means biography,” Singhal says. “And if you type ‘bio warfare,’ it means biological.”

Footnotes:
  1. update, I notice that the Bing results are actually not as precise as Google’s results []