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Weiye Loh

Do avatars have digital rights? - 20 views

hi weiye, i agree with you that this brings in the topic of representation. maybe you should try taking media and representation by Dr. Ingrid to discuss more on this. Going back to your questio...

avatars

started by Elaine Ong on 16 Sep 09 7 follow-ups, last by Weiye Loh on 18 Sep 09
nora sikin

More seeking legal recourse for online defamation - 7 views

The link for the full article is available at: http://digital.asiaone.com/Digital/Features/Story/A1Story20090615-148560.html Summary of the article: This article mentions there there has been an i...

online defamation straits times legal

started by nora sikin on 18 Aug 09 no follow-up yet
Inosha Wickrama

ethical porn? - 50 views

I've seen that video recently. Anyway, some points i need to make. 1. different countries have different ages of consent. Does that mean children mature faster in some countries and not in other...

pornography

started by lee weiting on 30 Aug 09 9 follow-ups, last by Inosha Wickrama on 04 Sep 09
Weiye Loh

In the Dock, in Paris « EJIL: Talk! - 0 views

www.ejiltalk.org/in-the-dock-in-paris

Academic Freedom Academic Journal Defamation Online

shared by Weiye Loh on 30 Jan 11 - No Cached
  • My entire professional life has been in the law, but nothing had prepared me for this. I have been a tenured faculty member  at the finest institutions, most recently Harvard and NYU.  I have held visiting appointments from Florence to Singapore, from Melbourne to Jerusalem. I have acted as legal counsel to governments on four continents, handled cases before the highest jurisdictions and arbitrated the most complex disputes among economic ‘super powers.’
  • Last week, for the first  time I found myself  in the dock, as a criminal defendant. The French Republic v Weiler on a charge of Criminal Defamation.
  • As Editor-in-Chief of the European Journal of International Law and its associated Book Reviewing website, I commissioned and then published a review of a book on the International Criminal Court. It was not a particularly favorable review. You may see all details here.  The author of the book, claiming defamation, demanded I remove it. I examined carefully the claim and concluded that the accusation was fanciful. Unflattering? Yes. Defamatory, by no stretch of imagination. It was my ‘Voltairian’ moment. I refused the request. I did offer to publish a reply by the author. This offer was declined.
  • ...6 more annotations...
  • Three months later I was summoned to appear before an Examining Magistrate in Paris based on a complaint of criminal defamation lodged by the author. Why Paris you might ask? Indeed. The author of the book was an Israeli academic. The book was in English. The publisher was Dutch. The reviewer was a distinguished German professor. The review was published on a New York website.
  • Beyond doubt, once a text or image go online, they become available worldwide, including France. But should that alone give jurisdiction to French courts in circumstances such as this? Does the fact that the author of the book, it turned out, retained her French nationality before going to live and work in Israel make a difference? Libel tourism – libel terrorism to some — is typically associated with London, where notorious high legal fees and punitive damages coerce many to throw in the towel even before going to trial. Paris, as we would expect, is more egalitarian and less materialist. It is very plaintiff friendly.
  • In France an attack on one’s honor is taken as seriously as a bodily attack. Substantively, if someone is defamed, the bad faith of the defamer is presumed just as in our system, if someone slaps you in the face, it will be assumed that he intended to do so. Procedurally it is open to anyone who feels defamed, to avoid the costly civil route, and simply lodge a criminal complaint.  At this point the machinery of the State swings into action. For the defendant it is not without cost, I discovered. Even if I win I will not recover my considerable legal expenses and conviction results in a fine the size of which may depend on one’s income (the egalitarian reflex at its best). But money is not the principal currency here. It is honor and shame. If I lose, I will stand convicted of a crime, branded a criminal. The complainant will not enjoy a windfall as in London, but considerable moral satisfaction. The chilling effect on book reviewing well beyond France will be considerable.
  • The case was otiose for two reasons: It was in our view an egregious instance of ‘forum shopping,’ legalese for libel tourism. We wanted it thrown out. But if successful, the Court would never get to the merits –  and it was important to challenge this hugely dangerous attack on academic freedom and liberty of expression. Reversing custom, we specifically asked the Court not to examine our jurisdictional challenge as a preliminary matter but to join it to the case on the merits so that it would have the possibility to pronounce on both issues.
  • The trial was impeccable by any standard with which I am familiar. The Court, comprised three judges specialized in defamation and the Public Prosecutor. Being a criminal case within the Inquisitorial System, the case began by my interrogation by the President of the Court. I was essentially asked to explain the reasons for refusing to remove the article. The President was patient with my French – fluent but bad!  I was then interrogated by the other judges, the Public Prosecutor and the lawyers for the complainant. The complainant was then subjected to the same procedure after which the lawyers made their (passionate) legal arguments. The Public Prosecutor then expressed her Opinion to the Court. I was allowed the last word. It was a strange mélange of the criminal and civil virtually unknown in the Common Law world. The procedure was less formal, aimed at establishing the truth, and far less hemmed down by rules of evidence and procedure. Due process was definitely served. It was a fair trial.
  • we steadfastly refused to engage the complainants challenges to the veracity of the critical statements made by the reviewer. The thrust of our argument was that absent bad faith and malice, so long as the review in question addressed the book and did not make false statement about the author such as plagiarism, it should be shielded from libel claims, let alone criminal libel. Sorting out of the truth should be left to academic discourse, even if academic discourse has its own biases and imperfections.
Weiye Loh

Twitter unmasks anonymous British user in landmark legal battle | Technology | The Guar... - 0 views

www.guardian.co.uk/...er-anonymous-user-legal-battle

Twitter Injunction Law Privacy Censorship

shared by Weiye Loh on 29 May 11 - No Cached
  • Giggs brought the lawsuit at the high court in London and the move to use California courts is likely to be seen as a landmark moment in the internet privacy battle.Ahmed Khan, the south Tyneside councillor accused of being the author of the pseudonymous Twitter accounts, described the council's move as "Orwellian". Khan received an email from Twitter earlier this month informing him that the site had handed over his personal information. He denies being the author of the allegedly defamatory material.
  • Khan said the information Twitter handed over was "just a great long list of numbers". The subpeona ordered Twitter to hand over 30 pieces of information relating to several Twitter accounts, including @fatcouncillor and @ahmedkhan01."I don't fully understand it but it all relates to my Twitter account and it not only breaches my human rights, but it potentially breaches the human rights of anyone who has ever sent me a message on Twitter.
  • He added: "I was never even told they were taking this case to court in California. The first I heard was when Twitter contacted me. I had just 14 days to defend the case and I was expected to fly 6,000 miles and hire my own lawyer – all at my expense."Even if they unmask this blogger, what does the council hope to achieve ? The person or persons concerned is simply likely to declare bankruptcy and the council won't recover any money it has spent."
Weiye Loh

Criticism and takedown: how review sites can defend free speech - 0 views

arstechnica.com/...tes-can-defend-free-speech.ars

Criticism Review Law Censorship Libel

shared by Weiye Loh on 01 Jun 11 - No Cached
  • Review sites depend on user trust, and that trust is eroded when businesses are able to manipulate their own reviews. Some, including Yelp, view themselves as passive conduits for their users' reviews. Others take a more active role in fighting against censorship of patients. We think the latter approach makes more sense.
  • "it's scary to be involved in litigation," Levy said. "For many ordinary people, the easiest thing is to move on with your life."
  • Review sites can protect the integrity of their review processes by actively fighting such takedown requests.
  • ...5 more annotations...
  • review sites could do more. For example, Yelp could have offered to represent Alice itself, or even filed for a declaratory judgment that Alice's post was not an infringement of copyright.
  • According to Yelp spokeswoman Stephanie Ichinose, that isn't Yelp's role. "The way we approach this space is that we're a platform," she told Ars by phone. When faced with a lawsuit threat, "some reviewers might choose to take down their reviews, others may choose to leave them intact."
  • Wendy Seltzer, founder of the Chiling Effects clearinghouse, thinks that's not good enough. "It's in Yelp's interest not to let it or its submitters be manipulated by these agreements," she said. "The reading public is going to learn that these things exist and then come to distrust the sites."
  • Transparency is another key weapon against review censorship.
  • Ars talked to Angie Hicks, founder of Angie's List, about the steps her company takes to prevent manipulation by business owners. "Angie's List is positioned very differently in the review space," she said. "We don't accept anonymous reviews. Consumers pay to be a part of Angie's List. And any time a flag is raised about a review, it's reviewed by a human." Angie said that her company actively penalizes businesses who try to use user agreements to censor her users. "Whenever we find that a doctor is asking patients to sign this kind of agreement, we put a notification on that provider's record," she said. "We also take them out of search results."
  • Weiye Loh on 01 Jun 11
     
    the mere threat of a lawsuit-even a legally frivolous one-is enough to force patients to take down negative reviews.
High Syn

Safe and Legal Pot - 3 views

You can say that I love to party and get high occasionally. But, then again getting addicted to the real thing is a big NO NO. Gladly a friend of mine introduced me to Kronic. It is a brand of herb...

legal marijuana

started by High Syn on 13 Jun 11 no follow-up yet
High Syn

The Best Thing Happened to Party People Like Me - 1 views

I really have my doubts when I first heard about herbal highs and legal weed. I said "there is no such thing" but everything changed when I tried Kronic original. True to its promise, it gives the ...

legal pot

started by High Syn on 13 Jun 11 no follow-up yet
joanne ye

TJC Stomp Scandal - 34 views

This is a very interesting topic. Thanks, Weiman! From the replies for this topic, I would say two general questions surfaced. Firstly, is STOMP liable for misinformation? Secondly, is it right for...

started by Weiman Kow on 19 Aug 09 3 follow-ups, last by joanne ye on 26 Aug 09
Inosha Wickrama

Pirate Bay Victory - 11 views

http://www.telegraph.co.uk/technology/news/4686584/Pirate-Bay-victory-after-illegal-file-sharing-charges-dropped.html Summary: The Pirate Bay, the biggest file-sharing internet site which was accu...

started by Elaine Ong on 25 Aug 09 1 follow-up, last by Inosha Wickrama on 26 Aug 09
Karin Tan

ASCAP Makes Outlandish Copyright Claims on Cell Phone Ringtones - 16 views

As is the beginnings of copyright laws, it is to place value on IP so that people will have the motivation and incentive to produce and create even more in the future. Therefore, by saying th...

Copyright

started by Jude John on 24 Aug 09 5 follow-ups, last by Karin Tan on 26 Aug 09
Weiye Loh

The Inequality That Matters - Tyler Cowen - The American Interest Magazine - 0 views

www.the-american-interest.com/article-bd.cfm

Income Inequality Social Divide Economy

shared by Weiye Loh on 16 Dec 10 - No Cached
  • most of the worries about income inequality are bogus, but some are probably better grounded and even more serious than even many of their heralds realize.
  • In terms of immediate political stability, there is less to the income inequality issue than meets the eye. Most analyses of income inequality neglect two major points. First, the inequality of personal well-being is sharply down over the past hundred years and perhaps over the past twenty years as well. Bill Gates is much, much richer than I am, yet it is not obvious that he is much happier if, indeed, he is happier at all. I have access to penicillin, air travel, good cheap food, the Internet and virtually all of the technical innovations that Gates does. Like the vast majority of Americans, I have access to some important new pharmaceuticals, such as statins to protect against heart disease. To be sure, Gates receives the very best care from the world’s top doctors, but our health outcomes are in the same ballpark. I don’t have a private jet or take luxury vacations, and—I think it is fair to say—my house is much smaller than his. I can’t meet with the world’s elite on demand. Still, by broad historical standards, what I share with Bill Gates is far more significant than what I don’t share with him.
  • when average people read about or see income inequality, they don’t feel the moral outrage that radiates from the more passionate egalitarian quarters of society. Instead, they think their lives are pretty good and that they either earned through hard work or lucked into a healthy share of the American dream.
  • ...35 more annotations...
  • This is why, for example, large numbers of Americans oppose the idea of an estate tax even though the current form of the tax, slated to return in 2011, is very unlikely to affect them or their estates. In narrowly self-interested terms, that view may be irrational, but most Americans are unwilling to frame national issues in terms of rich versus poor. There’s a great deal of hostility toward various government bailouts, but the idea of “undeserving” recipients is the key factor in those feelings. Resentment against Wall Street gamesters hasn’t spilled over much into resentment against the wealthy more generally. The bailout for General Motors’ labor unions wasn’t so popular either—again, obviously not because of any bias against the wealthy but because a basic sense of fairness was violated. As of November 2010, congressional Democrats are of a mixed mind as to whether the Bush tax cuts should expire for those whose annual income exceeds $250,000; that is in large part because their constituents bear no animus toward rich people, only toward undeservedly rich people.
  • envy is usually local. At least in the United States, most economic resentment is not directed toward billionaires or high-roller financiers—not even corrupt ones. It’s directed at the guy down the hall who got a bigger raise. It’s directed at the husband of your wife’s sister, because the brand of beer he stocks costs $3 a case more than yours, and so on. That’s another reason why a lot of people aren’t so bothered by income or wealth inequality at the macro level. Most of us don’t compare ourselves to billionaires. Gore Vidal put it honestly: “Whenever a friend succeeds, a little something in me dies.”
  • Occasionally the cynic in me wonders why so many relatively well-off intellectuals lead the egalitarian charge against the privileges of the wealthy. One group has the status currency of money and the other has the status currency of intellect, so might they be competing for overall social regard? The high status of the wealthy in America, or for that matter the high status of celebrities, seems to bother our intellectual class most. That class composes a very small group, however, so the upshot is that growing income inequality won’t necessarily have major political implications at the macro level.
  • All that said, income inequality does matter—for both politics and the economy.
  • The numbers are clear: Income inequality has been rising in the United States, especially at the very top. The data show a big difference between two quite separate issues, namely income growth at the very top of the distribution and greater inequality throughout the distribution. The first trend is much more pronounced than the second, although the two are often confused.
  • When it comes to the first trend, the share of pre-tax income earned by the richest 1 percent of earners has increased from about 8 percent in 1974 to more than 18 percent in 2007. Furthermore, the richest 0.01 percent (the 15,000 or so richest families) had a share of less than 1 percent in 1974 but more than 6 percent of national income in 2007. As noted, those figures are from pre-tax income, so don’t look to the George W. Bush tax cuts to explain the pattern. Furthermore, these gains have been sustained and have evolved over many years, rather than coming in one or two small bursts between 1974 and today.1
  • At the same time, wage growth for the median earner has slowed since 1973. But that slower wage growth has afflicted large numbers of Americans, and it is conceptually distinct from the higher relative share of top income earners. For instance, if you take the 1979–2005 period, the average incomes of the bottom fifth of households increased only 6 percent while the incomes of the middle quintile rose by 21 percent. That’s a widening of the spread of incomes, but it’s not so drastic compared to the explosive gains at the very top.
  • The broader change in income distribution, the one occurring beneath the very top earners, can be deconstructed in a manner that makes nearly all of it look harmless. For instance, there is usually greater inequality of income among both older people and the more highly educated, if only because there is more time and more room for fortunes to vary. Since America is becoming both older and more highly educated, our measured income inequality will increase pretty much by demographic fiat. Economist Thomas Lemieux at the University of British Columbia estimates that these demographic effects explain three-quarters of the observed rise in income inequality for men, and even more for women.2
  • Attacking the problem from a different angle, other economists are challenging whether there is much growth in inequality at all below the super-rich. For instance, real incomes are measured using a common price index, yet poorer people are more likely to shop at discount outlets like Wal-Mart, which have seen big price drops over the past twenty years.3 Once we take this behavior into account, it is unclear whether the real income gaps between the poor and middle class have been widening much at all. Robert J. Gordon, an economist from Northwestern University who is hardly known as a right-wing apologist, wrote in a recent paper that “there was no increase of inequality after 1993 in the bottom 99 percent of the population”, and that whatever overall change there was “can be entirely explained by the behavior of income in the top 1 percent.”4
  • And so we come again to the gains of the top earners, clearly the big story told by the data. It’s worth noting that over this same period of time, inequality of work hours increased too. The top earners worked a lot more and most other Americans worked somewhat less. That’s another reason why high earners don’t occasion more resentment: Many people understand how hard they have to work to get there. It also seems that most of the income gains of the top earners were related to performance pay—bonuses, in other words—and not wildly out-of-whack yearly salaries.5
  • It is also the case that any society with a lot of “threshold earners” is likely to experience growing income inequality. A threshold earner is someone who seeks to earn a certain amount of money and no more. If wages go up, that person will respond by seeking less work or by working less hard or less often. That person simply wants to “get by” in terms of absolute earning power in order to experience other gains in the form of leisure—whether spending time with friends and family, walking in the woods and so on. Luck aside, that person’s income will never rise much above the threshold.
  • The funny thing is this: For years, many cultural critics in and of the United States have been telling us that Americans should behave more like threshold earners. We should be less harried, more interested in nurturing friendships, and more interested in the non-commercial sphere of life. That may well be good advice. Many studies suggest that above a certain level more money brings only marginal increments of happiness. What isn’t so widely advertised is that those same critics have basically been telling us, without realizing it, that we should be acting in such a manner as to increase measured income inequality. Not only is high inequality an inevitable concomitant of human diversity, but growing income inequality may be, too, if lots of us take the kind of advice that will make us happier.
  • Why is the top 1 percent doing so well?
  • Steven N. Kaplan and Joshua Rauh have recently provided a detailed estimation of particular American incomes.6 Their data do not comprise the entire U.S. population, but from partial financial records they find a very strong role for the financial sector in driving the trend toward income concentration at the top. For instance, for 2004, nonfinancial executives of publicly traded companies accounted for less than 6 percent of the top 0.01 percent income bracket. In that same year, the top 25 hedge fund managers combined appear to have earned more than all of the CEOs from the entire S&P 500. The number of Wall Street investors earning more than $100 million a year was nine times higher than the public company executives earning that amount. The authors also relate that they shared their estimates with a former U.S. Secretary of the Treasury, one who also has a Wall Street background. He thought their estimates of earnings in the financial sector were, if anything, understated.
  • Many of the other high earners are also connected to finance. After Wall Street, Kaplan and Rauh identify the legal sector as a contributor to the growing spread in earnings at the top. Yet many high-earning lawyers are doing financial deals, so a lot of the income generated through legal activity is rooted in finance. Other lawyers are defending corporations against lawsuits, filing lawsuits or helping corporations deal with complex regulations. The returns to these activities are an artifact of the growing complexity of the law and government growth rather than a tale of markets per se. Finance aside, there isn’t much of a story of market failure here, even if we don’t find the results aesthetically appealing.
  • When it comes to professional athletes and celebrities, there isn’t much of a mystery as to what has happened. Tiger Woods earns much more, even adjusting for inflation, than Arnold Palmer ever did. J.K. Rowling, the first billionaire author, earns much more than did Charles Dickens. These high incomes come, on balance, from the greater reach of modern communications and marketing. Kids all over the world read about Harry Potter. There is more purchasing power to spend on children’s books and, indeed, on culture and celebrities more generally. For high-earning celebrities, hardly anyone finds these earnings so morally objectionable as to suggest that they be politically actionable. Cultural critics can complain that good schoolteachers earn too little, and they may be right, but that does not make celebrities into political targets. They’re too popular. It’s also pretty clear that most of them work hard to earn their money, by persuading fans to buy or otherwise support their product. Most of these individuals do not come from elite or extremely privileged backgrounds, either. They worked their way to the top, and even if Rowling is not an author for the ages, her books tapped into the spirit of their time in a special way. We may or may not wish to tax the wealthy, including wealthy celebrities, at higher rates, but there is no need to “cure” the structural causes of higher celebrity incomes.
  • to be sure, the high incomes in finance should give us all pause.
  • The first factor driving high returns is sometimes called by practitioners “going short on volatility.” Sometimes it is called “negative skewness.” In plain English, this means that some investors opt for a strategy of betting against big, unexpected moves in market prices. Most of the time investors will do well by this strategy, since big, unexpected moves are outliers by definition. Traders will earn above-average returns in good times. In bad times they won’t suffer fully when catastrophic returns come in, as sooner or later is bound to happen, because the downside of these bets is partly socialized onto the Treasury, the Federal Reserve and, of course, the taxpayers and the unemployed.
  • if you bet against unlikely events, most of the time you will look smart and have the money to validate the appearance. Periodically, however, you will look very bad. Does that kind of pattern sound familiar? It happens in finance, too. Betting against a big decline in home prices is analogous to betting against the Wizards. Every now and then such a bet will blow up in your face, though in most years that trading activity will generate above-average profits and big bonuses for the traders and CEOs.
  • To this mix we can add the fact that many money managers are investing other people’s money. If you plan to stay with an investment bank for ten years or less, most of the people playing this investing strategy will make out very well most of the time. Everyone’s time horizon is a bit limited and you will bring in some nice years of extra returns and reap nice bonuses. And let’s say the whole thing does blow up in your face? What’s the worst that can happen? Your bosses fire you, but you will still have millions in the bank and that MBA from Harvard or Wharton. For the people actually investing the money, there’s barely any downside risk other than having to quit the party early. Furthermore, if everyone else made more or less the same mistake (very surprising major events, such as a busted housing market, affect virtually everybody), you’re hardly disgraced. You might even get rehired at another investment bank, or maybe a hedge fund, within months or even weeks.
  • Moreover, smart shareholders will acquiesce to or even encourage these gambles. They gain on the upside, while the downside, past the point of bankruptcy, is borne by the firm’s creditors. And will the bondholders object? Well, they might have a difficult time monitoring the internal trading operations of financial institutions. Of course, the firm’s trading book cannot be open to competitors, and that means it cannot be open to bondholders (or even most shareholders) either. So what, exactly, will they have in hand to object to?
  • Perhaps more important, government bailouts minimize the damage to creditors on the downside. Neither the Treasury nor the Fed allowed creditors to take any losses from the collapse of the major banks during the financial crisis. The U.S. government guaranteed these loans, either explicitly or implicitly. Guaranteeing the debt also encourages equity holders to take more risk. While current bailouts have not in general maintained equity values, and while share prices have often fallen to near zero following the bust of a major bank, the bailouts still give the bank a lifeline. Instead of the bank being destroyed, sometimes those equity prices do climb back out of the hole. This is true of the major surviving banks in the United States, and even AIG is paying back its bailout. For better or worse, we’re handing out free options on recovery, and that encourages banks to take more risk in the first place.
  • there is an unholy dynamic of short-term trading and investing, backed up by bailouts and risk reduction from the government and the Federal Reserve. This is not good. “Going short on volatility” is a dangerous strategy from a social point of view. For one thing, in so-called normal times, the finance sector attracts a big chunk of the smartest, most hard-working and most talented individuals. That represents a huge human capital opportunity cost to society and the economy at large. But more immediate and more important, it means that banks take far too many risks and go way out on a limb, often in correlated fashion. When their bets turn sour, as they did in 2007–09, everyone else pays the price.
  • And it’s not just the taxpayer cost of the bailout that stings. The financial disruption ends up throwing a lot of people out of work down the economic food chain, often for long periods. Furthermore, the Federal Reserve System has recapitalized major U.S. banks by paying interest on bank reserves and by keeping an unusually high interest rate spread, which allows banks to borrow short from Treasury at near-zero rates and invest in other higher-yielding assets and earn back lots of money rather quickly. In essence, we’re allowing banks to earn their way back by arbitraging interest rate spreads against the U.S. government. This is rarely called a bailout and it doesn’t count as a normal budget item, but it is a bailout nonetheless. This type of implicit bailout brings high social costs by slowing down economic recovery (the interest rate spreads require tight monetary policy) and by redistributing income from the Treasury to the major banks.
  • the “going short on volatility” strategy increases income inequality. In normal years the financial sector is flush with cash and high earnings. In implosion years a lot of the losses are borne by other sectors of society. In other words, financial crisis begets income inequality. Despite being conceptually distinct phenomena, the political economy of income inequality is, in part, the political economy of finance. Simon Johnson tabulates the numbers nicely: From 1973 to 1985, the financial sector never earned more than 16 percent of domestic corporate profits. In 1986, that figure reached 19 percent. In the 1990s, it oscillated between 21 percent and 30 percent, higher than it had ever been in the postwar period. This decade, it reached 41 percent. Pay rose just as dramatically. From 1948 to 1982, average compensation in the financial sector ranged between 99 percent and 108 percent of the average for all domestic private industries. From 1983, it shot upward, reaching 181 percent in 2007.7
  • There’s a second reason why the financial sector abets income inequality: the “moving first” issue. Let’s say that some news hits the market and that traders interpret this news at different speeds. One trader figures out what the news means in a second, while the other traders require five seconds. Still other traders require an entire day or maybe even a month to figure things out. The early traders earn the extra money. They buy the proper assets early, at the lower prices, and reap most of the gains when the other, later traders pile on. Similarly, if you buy into a successful tech company in the early stages, you are “moving first” in a very effective manner, and you will capture most of the gains if that company hits it big.
  • The moving-first phenomenon sums to a “winner-take-all” market. Only some relatively small number of traders, sometimes just one trader, can be first. Those who are first will make far more than those who are fourth or fifth. This difference will persist, even if those who are fourth come pretty close to competing with those who are first. In this context, first is first and it doesn’t matter much whether those who come in fourth pile on a month, a minute or a fraction of a second later. Those who bought (or sold, as the case may be) first have captured and locked in most of the available gains. Since gains are concentrated among the early winners, and the closeness of the runner-ups doesn’t so much matter for income distribution, asset-market trading thus encourages the ongoing concentration of wealth. Many investors make lots of mistakes and lose their money, but each year brings a new bunch of projects that can turn the early investors and traders into very wealthy individuals.
  • These two features of the problem—“going short on volatility” and “getting there first”—are related. Let’s say that Goldman Sachs regularly secures a lot of the best and quickest trades, whether because of its quality analysis, inside connections or high-frequency trading apparatus (it has all three). It builds up a treasure chest of profits and continues to hire very sharp traders and to receive valuable information. Those profits allow it to make “short on volatility” bets faster than anyone else, because if it messes up, it still has a large enough buffer to pad losses. This increases the odds that Goldman will repeatedly pull in spectacular profits.
  • Still, every now and then Goldman will go bust, or would go bust if not for government bailouts. But the odds are in any given year that it won’t because of the advantages it and other big banks have. It’s as if the major banks have tapped a hole in the social till and they are drinking from it with a straw. In any given year, this practice may seem tolerable—didn’t the bank earn the money fair and square by a series of fairly normal looking trades? Yet over time this situation will corrode productivity, because what the banks do bears almost no resemblance to a process of getting capital into the hands of those who can make most efficient use of it. And it leads to periodic financial explosions. That, in short, is the real problem of income inequality we face today. It’s what causes the inequality at the very top of the earning pyramid that has dangerous implications for the economy as a whole.
  • What about controlling bank risk-taking directly with tight government oversight? That is not practical. There are more ways for banks to take risks than even knowledgeable regulators can possibly control; it just isn’t that easy to oversee a balance sheet with hundreds of billions of dollars on it, especially when short-term positions are wound down before quarterly inspections. It’s also not clear how well regulators can identify risky assets. Some of the worst excesses of the financial crisis were grounded in mortgage-backed assets—a very traditional function of banks—not exotic derivatives trading strategies. Virtually any asset position can be used to bet long odds, one way or another. It is naive to think that underpaid, undertrained regulators can keep up with financial traders, especially when the latter stand to earn billions by circumventing the intent of regulations while remaining within the letter of the law.
  • For the time being, we need to accept the possibility that the financial sector has learned how to game the American (and UK-based) system of state capitalism. It’s no longer obvious that the system is stable at a macro level, and extreme income inequality at the top has been one result of that imbalance. Income inequality is a symptom, however, rather than a cause of the real problem. The root cause of income inequality, viewed in the most general terms, is extreme human ingenuity, albeit of a perverse kind. That is why it is so hard to control.
  • Another root cause of growing inequality is that the modern world, by so limiting our downside risk, makes extreme risk-taking all too comfortable and easy. More risk-taking will mean more inequality, sooner or later, because winners always emerge from risk-taking. Yet bankers who take bad risks (provided those risks are legal) simply do not end up with bad outcomes in any absolute sense. They still have millions in the bank, lots of human capital and plenty of social status. We’re not going to bring back torture, trial by ordeal or debtors’ prisons, nor should we. Yet the threat of impoverishment and disgrace no longer looms the way it once did, so we no longer can constrain excess financial risk-taking. It’s too soft and cushy a world.
  • Why don’t we simply eliminate the safety net for clueless or unlucky risk-takers so that losses equal gains overall? That’s a good idea in principle, but it is hard to put into practice. Once a financial crisis arrives, politicians will seek to limit the damage, and that means they will bail out major financial institutions. Had we not passed TARP and related policies, the United States probably would have faced unemployment rates of 25 percent of higher, as in the Great Depression. The political consequences would not have been pretty. Bank bailouts may sound quite interventionist, and indeed they are, but in relative terms they probably were the most libertarian policy we had on tap. It meant big one-time expenses, but, for the most part, it kept government out of the real economy (the General Motors bailout aside).
  • We probably don’t have any solution to the hazards created by our financial sector, not because plutocrats are preventing our political system from adopting appropriate remedies, but because we don’t know what those remedies are. Yet neither is another crisis immediately upon us. The underlying dynamic favors excess risk-taking, but banks at the current moment fear the scrutiny of regulators and the public and so are playing it fairly safe. They are sitting on money rather than lending it out. The biggest risk today is how few parties will take risks, and, in part, the caution of banks is driving our current protracted economic slowdown. According to this view, the long run will bring another financial crisis once moods pick up and external scrutiny weakens, but that day of reckoning is still some ways off.
  • Is the overall picture a shame? Yes. Is it distorting resource distribution and productivity in the meantime? Yes. Will it again bring our economy to its knees? Probably. Maybe that’s simply the price of modern society. Income inequality will likely continue to rise and we will search in vain for the appropriate political remedies for our underlying problems.
Weiye Loh

Meet the man who broke the vaccine-autism scandal - The Globe and Mail - 0 views

www.theglobeandmail.com/...singlepage

Truth Ethics Journalism Vaccine Medicine Health

shared by Weiye Loh on 21 Feb 11 - No Cached
  • Brian Deer radiates a remarkably bland persona for someone who stunned the global medical community and unravelled what he calls “one of those Aristotelian stories where you have both pity and fear.” This is the journalist behind the series of stories that completely discredited the research linking the measles mumps rubella (MMR) vaccine to autism. First published in The Lancet in 1998, it unleashed a worldwide public health scare and gave distressed parents of autistic children a place to lay blame for the devastation of the diagnosis.
  • Seven years ago, Mr. Deer, a freelance journalist who works mostly for The Sunday Times in London, began an investigation into research conducted in the 1990s, which had spawned a worldwide debate about the safety and well-being of children. The published research showed a link between the MMR vaccine, routinely given to children in the first years of life, to the onset of autism, a developmental disorder that appears in the first three years, and affects a child’s social behaviour and communication skills. Out of fear, many parents refused to immunize their children.The final outcome of Mr. Deer’s investigation came last month, when Andrew Wakefield, the lead researcher, as well as two of his colleagues, saw their reputations torn to shreds in a medical misconduct inquiry, the longest in history, by the General Medical Council in the United Kingdom. More than 30 charges, including four counts of dishonesty in regard to money, research and public statements, were proven against Dr. Wakefield. The Lancet retracted the paper in 2010.
  • The MMR research paper, which triggered a high-profile anti-vaccine campaign, led by such celebrities as actress Jenny McCarthy, involved 12 children between the ages of three and nine. All had brain disorders. The parents of eight of them reported that signs of autism arose within days of the children receiving the MMR vaccine.“It was just too cute,” Mr. Deer says of the findings. Through the Freedom of Information Act, he discovered that Dr. Wakefield’s research had been funded by the British Legal Aid fund, and that the children had been recruited through lawyers and anti-vaccine groups.
  • ...3 more annotations...
  • Dr. Wakefield sued him and The Sunday Times for libel, but later withdrew the charges and was forced to pay Mr. Deer’s legal costs, which amounted to £1.4 million (almost $3-million). In the subsequent medical inquiry, Dr. Wakefield was shown to have had “a callous disregard” for the “distress and pain” of the developmentally challenged children, some of whom were subjected to invasive “high risk” procedures, including lumbar punctures, without clinical reasons.After the first story ran in 2004, Mr. Deer, who is unmarried and has no children, also revealed that Dr. Wakefield had patented a single measles vaccine after creating fear about the standard MMR shot.
  • To this day, Dr. Wakefield remains unrepentant. He boycotted the legal inquiry just as he has avoided any interview with Mr. Deer. A father of four children, he has a large ranch in Austin, Texas. Some parents in the anti-vaccine community, enabled by the Internet, have falsely accused Mr. Deer of mounting a kangaroo court against Dr. Wakefield.
  • While the consequences of Dr. Wakefield’s research were serious – immunization rates in Britain dropped dramatically and measles outbreaks ensued – it also gave parents of autistic children a purpose (however ill-founded) in which to find solace. How does he feel about taking that away?“I can’t think through the consequences of trying to tell the truth,” he stutters, seemingly surprised by the question. After a thoughtful pause he adds: “I think those parents are freer for having the truth than being caught in denial and deception.”
    • Weiye Loh
      Weiye Loh on 21 Feb 11
       
      Truth hurts. That's why people prefer to live in denial. 
Weiye Loh

Report: Piracy a "global pricing problem" with only one solution - 0 views

arstechnica.com/...lem-with-only-one-solution.ars

Piracy Pricing Capitalism Globalization Income Inequality

shared by Weiye Loh on 14 Mar 11 - No Cached
  • Over the last three years, 35 researchers contributed to the Media Piracy Project, released last week by the Social Science Research Council. Their mission was to examine media piracy in emerging economies, which account for most of the world's population, and to find out just how and why piracy operates in places like Russia, Mexico, and India.
  • Their conclusion is not that citizens of such piratical societies are somehow morally deficient or opposed to paying for content. Instead, they write that “high prices for media goods, low incomes, and cheap digital technologies are the main ingredients of global media piracy. If piracy is ubiquitous in most parts of the world, it is because these conditions are ubiquitous.”
  • When legitimate CDs, DVDs, and computer software are five to ten times higher (relative to local incomes) than they are in the US and Europe, simply ratcheting up copyright enforcement won't do enough to fix the problem. In the view of the report's authors, the only real solution is the creation of local companies that “actively compete on price and services for local customers” as they sell movies, music, and more.
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  • Some markets have local firms that compete on price to offer legitimate content (think the US, which has companies like Hulu, Netflix, Apple, and Microsoft that compete to offer legal video content). But the authors conclude that, in most of the world, legitimate copyrighted goods are only distributed by huge multinational corporations whose dominant goals are not to service a large part of local markets but to “protect the pricing structure in the high-income countries that generate most of their profits.”
  • This might increase profits globally, but it has led to disaster in many developing economies, where piracy may run north of 90 percent. Given access to cheap digital tools, but charged terrific amounts of money for legitimate versions of content, users choose piracy.
  • In Russia, for instance, researchers noted that legal versions of the film The Dark Knight went for $15. That price, akin to what a US buyer would pay, might sound reasonable until you realize that Russians make less money in a year than US workers. As a percentage of their wages, that $15 price is actually equivalent to a US consumer dropping $75 on the film. Pirate versions can be had for one-third the price.
  • Simple crackdowns on pirate behavior won't work in the absence of pricing and other reforms, say the report's authors (who also note that even "developed" economies routinely pirate TV shows and movies that are not made legally available to them for days, weeks, or months after they originally appear elsewhere).
  • The "strong moralization of the debate” makes it difficult to discuss issues beyond enforcement, however, and the authors slam the content companies for lacking any credible "endgame" to their constant requests for more civil and police powers in the War on Piracy.
  • piracy is a “signal of unmet consumer demand.
  • Our studies raise concerns that it may be a long time before such accommodations to reality reach the international policy arena. Hardline enforcement positions may be futile at stemming the tide of piracy, but the United States bears few of the costs of such efforts, and US companies reap most of the modest benefits. This is a recipe for continued US pressure on developing countries, very possibly long after media business models in the United States and other high-income countries have changed.
  • Weiye Loh on 14 Mar 11
     
    A major new report from a consortium of academic researchers concludes that media piracy can't be stopped through "three strikes" Internet disconnections, Web censorship, more police powers, higher statutory damages, or tougher criminal penalties. That's because the piracy of movies, music, video games, and software is "better described as a global pricing problem." And the only way to solve it is by changing the price.
Weiye Loh

Free Speech under Siege - Robert Skidelsky - Project Syndicate - 0 views

www.project-syndicate.org/...English

Law Freedom of Speech Discrimination Libel Political Correctness Truths Opinion

shared by Weiye Loh on 21 Jun 11 - No Cached
  • Breaking the cultural code damages a person’s reputation, and perhaps one’s career. Britain’s Home Secretary Kenneth Clarke recently had to apologize for saying that some rapes were less serious than others, implying the need for legal discrimination. The parade of gaffes and subsequent groveling apologies has become a regular feature of public life. In his classic essay On Liberty, John Stuart Mill defended free speech on the ground that free inquiry was necessary to advance knowledge. Restrictions on certain areas of historical inquiry are based on the opposite premise: the truth is known, and it is impious to question it. This is absurd; every historian knows that there is no such thing as final historical truth.
  • It is not the task of history to defend public order or morals, but to establish what happened. Legally protected history ensures that historians will play safe. To be sure, living by Mill’s principle often requires protecting the rights of unsavory characters. David Irving writes mendacious history, but his prosecution and imprisonment in Austria for “Holocaust denial” would have horrified Mill.
  • the pressure for “political correctness” rests on the argument that the truth is unknowable. Statements about the human condition are essentially matters of opinion.  Because a statement of opinion by some individuals is almost certain to offend others, and since such statements make no contribution to the discovery of truth, their degree of offensiveness becomes the sole criterion for judging their admissibility. Hence the taboo on certain words, phrases, and arguments that imply that certain individuals, groups, or practices are superior or inferior, normal or abnormal; hence the search for ever more neutral ways to label social phenomena, thereby draining language of its vigor and interest.
  • ...3 more annotations...
  • A classic example is the way that “family” has replaced “marriage” in public discourse, with the implication that all “lifestyles” are equally valuable, despite the fact that most people persist in wanting to get married. It has become taboo to describe homosexuality as a “perversion,” though this was precisely the word used in the 1960’s by the radical philosopher Herbert Marcuse (who was praising homosexuality as an expression of dissent). In today’s atmosphere of what Marcuse would call “repressive tolerance,” such language would be considered “stigmatizing.”
  • The sociological imperative behind the spread of “political correctness” is the fact that we no longer live in patriarchal, hierarchical, mono-cultural societies, which exhibit general, if unreflective, agreement on basic values. The pathetic efforts to inculcate a common sense of “Britishness” or “Dutchness” in multi-cultural societies, however well-intentioned, attest to the breakdown of a common identity.
  • The defense of free speech is made no easier by the abuses of the popular press. We need free media to expose abuses of power. But investigative journalism becomes discredited when it is suborned to “expose” the private lives of the famous when no issue of public interest is involved. Entertaining gossip has mutated into an assault on privacy, with newspapers claiming that any attempt to keep them out of people’s bedrooms is an assault on free speech. You know that a doctrine is in trouble when not even those claiming to defend it understand what it means. By that standard, the classic doctrine of free speech is in crisis. We had better sort it out quickly – legally, morally, and culturally – if we are to retain a proper sense of what it means to live in a free society.
  • Weiye Loh on 21 Jun 11
     
    Yet freedom of speech in the West is under strain. Traditionally, British law imposed two main limitations on the "right to free speech." The first prohibited the use of words or expressions likely to disrupt public order; the second was the law against libel. There are good grounds for both - to preserve the peace, and to protect individuals' reputations from lies. Most free societies accept such limits as reasonable. But the law has recently become more restrictive. "Incitement to religious and racial hatred" and "incitement to hatred on the basis of sexual orientation" are now illegal in most European countries, independent of any threat to public order. The law has shifted from proscribing language likely to cause violence to prohibiting language intended to give offense. A blatant example of this is the law against Holocaust denial. To deny or minimize the Holocaust is a crime in 15 European countries and Israel. It may be argued that the Holocaust was a crime so uniquely abhorrent as to qualify as a special case. But special cases have a habit of multiplying.
Weiye Loh

Drone journalism takes off - ABC News (Australian Broadcasting Corporation) - 0 views

www.abc.net.au/...3840616

Journalism Drones Technology Surveillance

shared by Weiye Loh on 22 Feb 12 - No Cached
  • Instead of acquiring military-style multi-million dollar unmanned aerial vehicles the size of small airliners, the media is beginning to go micro, exploiting rapid advances in technology by deploying small toy-like UAVs to get the story.
  • Last November, drone journalism hit the big time after a Polish activist launched a small craft with four helicopter-like rotors called a quadrocopter. He flew the drone low over riot police lines to record a violent demonstration in Warsaw. The pictures were extraordinarily different from run-of-the-mill protest coverage.Posted online, the images went viral. More significantly, this birds-eye view clip found its way onto the bulletins and web pages of mainstream media.
  • Drone Journalism Lab, a research project to determine the viability of remote airborne media.
  • Weiye Loh on 22 Feb 12
     
    Drones play an increasing and controversial role in modern warfare. From Afghanistan and Pakistan to Iran and Yemen, they have become a ubiquitous symbol of Washington's war on terrorism. Critics point to the mounting drone-induced death toll as evidence that machines, no matter how sophisticated, cannot discriminate between combatants and innocent bystanders. Now drones are starting to fly into a more peaceful, yet equally controversial role in the media. Rapid technological advances in low-cost aerial platforms herald the age of drone journalism. But it will not be all smooth flying: this new media tool can expect to be buffeted by the issues of safety, ethics and legality.
Jianwei Tan

Dominic Utton: How to scam a scammer |From the Guardian |The Guardian - 0 views

www.guardian.co.uk/...news.g2

Scam Scams Scammer Nigeria Nigerian 419scam Vigilantism Vigilante 419eater

shared by Jianwei Tan on 19 Aug 09 - Cached
  • Jianwei Tan on 19 Aug 09
     
    Summary: Some people may have heard of the Nigerian 419 scams that were very infamous quite a few years back. These scammers who supposedly operated out of Nigeria created elaborate stories and solicited for help through e-mails. Although the initial intention of the e-mail is to ask for help, subsequent correspondences usually result in the scammer requesting for monetary aid through wire transfer. This person, Mike, has taken it upon himself to declare war on these scammers, baiting them to believe that he would send money to them but in actual fact plays pranks on them. The pranks played range from telling silly stories and wasting the scammer's time to persuading the scammer to get tattooed in order to get the money. Question: Scams are, without a doubt, unethical and probably criminal activities. However, is the act of scamming a would-be scammer an ethical thing to do? Problem: Let's imagine a situation where the scammer and the scambaiter (the person scamming the scammer) are from the same country or even the same state, thus both parties would be subject to the same laws. If the scammer were to try and launch a scam and instead was scambaited into severe consequences (I think getting tattoed is quite severe), should the scambaiter be prosecuted by the legal system?
qiyi liao

Amazon targeted in class action over vanishing e-books - 0 views

www.ecommercetimes.com/...67742.html

privacy breach rights disclosure misinformation

shared by qiyi liao on 19 Aug 09 - Cached
  • qiyi liao on 19 Aug 09
     
    Issue in contention: Amazon deleted legally purchased e-books from Kindle users without prior notice, after learning that these e-books were pirated versions. This ability of Amazon's to "remotely delete digital content purchased through the Kindle store" was never disclosed to its paying customers. In fact, its license terms seem to offer Kindle users permanent access to the files they purchase (see #). Sure, Amazon admits mishandling the issue and promises never to remove content in such circumstances again. However, ultimately, they still own that power to remove, edit content etc. What effects would that have on our society then? Consider Orwell's notion of Big Brother in "1984" (Creepily, one of the books that was removed in this mini-scandal). Also, who is/should Amazon be more accountable to? Its customers? Shareholders? Third-party publishers? (At the end of the day, it's still a profit-seeking corporation.) NB. Kindle is a platform developed by Amazon for reading e-books and other digital media. #Upon your payment of the applicable fees set by Amazon, Amazon grants you the non-exclusive right to keep a permanent copy of the applicable Digital Content and to view, use, and display such Digital Content an unlimited number of times, solely on the Device or as authorized by Amazon as part of the Service and solely for your personal, non-commercial use.
Weiye Loh

Wk 4 Online censorship & digital access: Mormon Church Attacks Wikileaks - 6 views

WIKILEAK RELEASES SECRET CHURCH DOCUMENTS! The First Link is an article regarding Wikileaks releasing a 'copyrighted' and confidential Church document of the Mormons (also known as the Church of J...

Mormons Scientology Wikileaks Copyright Censorship

started by guanyou chen on 31 Aug 09 1 follow-up, last by Weiye Loh on 31 Aug 09
Chen Guo Lim

POLICE & THIEF - 5 views

According to the readings, one reason why people do not consider illegal downloads as theft is that it does not deprive others of that item. When I download an mp3 file from, the file will not disa...

started by Magdaleine on 26 Aug 09 1 follow-up, last by Chen Guo Lim on 26 Aug 09
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