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You are here: Home / Archives for Economics / Free Markets Solve Everything

Free Markets Solve Everything

Cyberwolverines!

by $8 blue check mistermix|  March 28, 201010:25 am| 60 Comments

This post is in: Free Markets Solve Everything, Security Theatre

Former NSA director Mike McConnell thinks we need to gear up for cyberwar, and he has a modest little plan:

We need to develop an early-warning system to monitor cyberspace, identify intrusions and locate the source of attacks with a trail of evidence that can support diplomatic, military and legal options — and we must be able to do this in milliseconds. More specifically, we need to reengineer the Internet to make attribution, geolocation, intelligence analysis and impact assessment — who did it, from where, why and what was the result — more manageable.

“Reengineer the Internet”? But what are we going to do after breakfast, Admiral?

Instead of funneling billions into the Department of Defense, here’s another idea: why don’t put a tiny bit of effort into regulating all the computer-based electronic devices we’re deploying, like “smart electric meters”. We have 8 million of those in the field, and a utility company study found they contained “security failures we’ve known about for the past 10 years.”

Almost every commercial, computer-based system failure follows the same pattern: weak regulatory standards, closed-source software, reliance on security through obscurity, and shoddy engineering discovered after the fact. If we required that every widely-deployed computer-based system was subject to regulation and open review, we’d close the kinds of vulnerabilities that have dogged technology like voting machines and SpeedPass.

Of course, it’s not as much fun to talk about regulation and open review of devices used by millions, mainly because you can’t talk about reacting in milliseconds, use cool code names, or refight the last war:

Ultimately, to build the right strategy to defend cyberspace, we need the equivalent of President Dwight D. Eisenhower’s Project Solarium. That 1953 initiative brought together teams of experts with opposing views to develop alternative strategies on how to wage the Cold War.

Cyberwolverines!Post + Comments (60)

First Lemming Over The Cliff

by $8 blue check mistermix|  March 27, 201010:16 am| 78 Comments

This post is in: Free Markets Solve Everything, Our Failed Media Experiment

Rupert Murdoch has just announced that he’ll be charging $1.50 a day, $3 a week ($155/year) for the privilege of reading the London Times and Sunday Times over the Internets.

In further craziness, he’s decided that an iPad subscription to the Wall Street Journal is worth $18/month, while one delivered by the regular Internet is around $8/month. I’d assume this means that the Journal is building a special iPad app that will do something other than deliver words to the screen of the iPad. Perhaps it will cause ice-cold beer to flow from the docking connector.

Maybe Rupert isn’t aware that the iPad will have a web browser and Internet connection that Journal subscribers can use if they want to save a sawbuck. Or, more likely, his iPad pricing is just another example of the SkyMall syndrome: the belief that one’s product is so special, and one’s audience is so captive, that a ridiculous surcharge will be tolerated.

I have no explanation for the Times pricing, other than the onset of senility.

First Lemming Over The CliffPost + Comments (78)

Dying Empire Update

by $8 blue check mistermix|  March 18, 20107:07 pm| 27 Comments

This post is in: Free Markets Solve Everything, Blatant Liars and the Lies They Tell

Viacom made big headlines two years ago when they filed a billion-dollar lawsuit against YouTube for “brazen copyright infringement”. Today, YouTube released their side of the story, which includes a few interesting facts:

For years, Viacom continuously and secretly uploaded its content to YouTube, even while publicly complaining about its presence there. It hired no fewer than 18 different marketing agencies to upload its content to the site. It deliberately “roughed up” the videos to make them look stolen or leaked. It opened YouTube accounts using phony email addresses. It even sent employees to Kinko’s to upload clips from computers that couldn’t be traced to Viacom. And in an effort to promote its own shows, as a matter of company policy Viacom routinely left up clips from shows that had been uploaded to YouTube by ordinary users.

YouTube’s no angel in this dispute, either, but at least they’re not trolling for a billion dollars.

Meanwhile, the dinosaurs at Universal have lowered CD prices to a max of $10. I’d wager that most of Universal’s target market has forgotten that CDs even exist, but I’m sure McMegan or someone like her will see this as more evidence of nimble innovation in the face of market pressure.

Dying Empire UpdatePost + Comments (27)

First Thing We Do

by $8 blue check mistermix|  March 13, 20107:14 am| 39 Comments

This post is in: Free Markets Solve Everything

I’d missed yesterday’s Times piece on Lehman, but it’s worth mentioning that US corporate lawyers come off looking pretty good:

Here, the investment bank used repos to temporarily park assets off its books to make its end-of-quarter debt levels look better than they did — while calling them sales instead of loans.
The accounting tactic, first used by Lehman in 2001, had one catch, according to Mr. Valukas: no American law firm would sign off on its use.

Of course, after Lehman found some British lawyers who would sign off on this fraud, their accounting firm, Ernst & Young, dutifully fell into line.

Remember Enron, brought to you in part by Arthur Andersen?  Maybe if Ernst & Young  is destroyed by this, as Andersen was, auditors will raise their ethical standards to the lofty heights of corporate lawyers,  or at least Catholic Popes.

And let’s not forget that the 2002 response to Enron, Sarbanes-Oxley, created an “overly complex regulatory environment” for financial services firms like Lehman.

First Thing We DoPost + Comments (39)

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