by John Holbo on August 2, 2009
Lemme horn in on Quiggin territory here. I just flew home to Singapore from New York and read about a third of Justin Fox’s The Myth of the Rational Market: A History of Risk, Reward, and Delusion on Wall Street [amazon] on the flight. (You can view my takeoff here.) Verdict: it’s good! Chapter 1 contains a lively portrait of Irving Fisher. He was, I have learned, a boldly quantitative economic pioneer who pronounced in print just before the crash of ’29 “stock prices have reached what looks like a permanently high plateau.” He lost his personal fortune in the Great Depression. (So he’s a nice emblem for Fox’s book – quants come to practical grief when reality neglects to live up to ideal model standards.)
For his doctoral thesis [completed in 1893] he devised the most sophisticated mathematical treatment yet of economic equilibrium, and he also designed and built a contraption of interconnected water-filled cisterns that he described as “the physical analogue of the ideal economic market.” Many decades later, economist Paul Samuelson judged this work to be “the greatest doctoral dissertation in economics ever writter.” It launched Fisher into a leading role among the world’s still-sparse ranks of mathematical economists. (10)
I want to hear more about his bold, pre-20th Century design for a compucistern system. [click to continue…]
by John Holbo on June 11, 2009
My Philosophy: Mind and Manners post provoked good discussion but left certain things unsaid. Let me say something more that may help the discussion stay on a generally useful track. I mentioned in passing in that post that, while there were things that philosophers do, which they regard as conversation-starters, which others regard as conversation-stoppers, which causes confusion, the opposite is also true. There are things other humanists do that they think of as conversation-starters, that strike philosophers as rude and inappropriate, because, to the philosophers, they seem like conversation-stoppers – argument-stoppers. (In philosophy, there is hardly a distinction between conversation and argument, after all.)
But first let me back up a bit. What I was talking about in that post was a tendency for a certain style of ‘but it’s your central premise just false?’ question to be taken amiss by outsiders. Let’s be precise about this: the problem is that outsiders take these questions to express deep contempt – ‘I challenge you to prove you are not an idiot, and I very much doubt you will succeed. I am going to shame you in the eyes of everyone here today.’ But to philosophers themselves, this style of question is normal and perfectly consistent with mutual respectfulness (although, of course, it is also consistent with contempt – a thing unknown to the troglodytes of the philosophy cave by no means! yet it is not a dark fungal growth peculiarly indigenous to the philosophy cave. Am I making myself clear?) [click to continue…]
by John Holbo on June 9, 2009
Welcome to our guest, Michèle Lamont, whose book I have been intending to read because it sounds damned interesting. The topic of her first guest post (philosophy vs. theory) has been an abiding research and reading interest of mine. A quick point about pecking orders, in response to her post, then I’ll just plug my own stuff, what hey! (But first: Squid and Owl was good today, and highly relevant to the theme of this very post. Right, that’s out of the way.)
Lamont says there’s a question as to “whether philosophers [inhabitants of that cave known as the department of philosophy, that is] have intellectual/emotional dispositions that preclude free interdisciplinary exchange of ideas. Or whether they are too concerned with their own status or with making claims for philosophy as the queen of the disciplines (encompassing others) to be open to interchange (to be contrasted with top-down proselytizing).” Yes, that one does get asked, and her asking it has provoked the usual range of responses in comments. (Not that there’s anything wrong with that!) But let me articulate what seems to me a fairly important sociological component to this ongoing interdisciplinary failure to communicate that actually tends to be overlooked – and is almost always funny. (So that’s two reasons not to overlook it.) Philosophers (by which I shall mean: typical inhabitants of the philosophy department) seem hyper-aggressive and bent on world domination because there is a style of debate in the philosophy department that is typically received as friendly and (personally) non-threatening by philosophers but typically received by non-philosophers in the humanities as the very opposite: namely, as unfriendly, an attempt to destroy, to humiliate, to silence, to cause the opponent to lose face in an intolerably grind-your-claims-into-sand fashion. (By the way, please note that I said ‘typical’. Yes, I know there will be counter-examples.) Who’s right? The question is ill-formed. It’s a cultural miscommunication. Maybe it’s easier to illustrate with a likely hypothetical. [click to continue…]
by John Holbo on March 29, 2009
Suppose Obama came out and said, roughly:
My fellow Americans, the thing about the Geithner plan is this. Experts disagree about the nature of the crisis. Either it is a liquidity problem or an insolvency problem. That means: either the market values of these so-called toxic assets are depressed because of a kind of market failure; or the market has priced these assets more or less correctly and many institutions holding these assets are, as a result, insolvent. If we are indeed in a liquidity crisis, the Geithner plan should solve it as well as any alternative plan could. If it is an insolvency crisis, however, as many experts believe, the Geithner plan will do nothing – or not nearly enough.
If the Geithner plan fails, we will confront another either/or: either nationalize these too-big-to-fail institutions, at great cost, or allow them to fail, collapsing the global financial system and, very likely, the world economy. This is no true choice, however. Hard as nationalization will be, if it comes to that, the alternative would be far, far worse.
We do not need to take this daunting step of nationalization yet because, first, we’re trying the Geithner plan. What you should know about the Geithner plan is that, if it fails, it will still have been worth trying. We will have determined that the problem is indeed insolvency. We will have clarified the path to be taken, laid to rest any reasonable skepticism about the strict need for nationalization. And we will have paid no more for this knowledge than we would have had to pay in any case. If the government effectively transfers money to distressed financial institutions, under the Geithner plan, and later those institutions have to be nationalized for a time, there is no need to ‘pay twice’. [click to continue…]
by John Q on November 18, 2008
It’s an analysis familiar to most on the Left. Support for laissez-faire is a hypocritical pretence, typified by Republicans who denounce a universal health care scheme as “socialist” while backing huge handouts for wealthy sugar producers.
For cultural and historical reasons, the United States has never had a proper socialist party of any significance[1]. Instead
the socialism we do have is the surreptitious socialism of the strong, e.g. sugar producers represented by their Washington hirelings.
In America, socialism is un-American. Instead, Americans merely do rent-seeking — bending government for the benefit of private factions.
As I say, familiar stuff. But it’s mildly surprising to see it coming from George Will.
[click to continue…]
by John Q on October 5, 2008
We’ve all been strictly enjoined to avoid schadenfreude in the current crisis, and indeed few are likely to escape unscathed. Still I’m struck by a couple of examples of historical irony
* Ten years ago, I was debating representatives of the Dutch bank ABN-AMRO, who were pushing for the privatisation of Australian Capital Territory Electricity and Water (ACTEW). A couple of days ago, the Dutch operations of ABN-AMRO were nationalised
* British Bank Northern Rock was nationalised following a run by customers seeking to withdraw their money. Now, seen as safer than its competitors, it is being forced to limit deposits.
by Henry Farrell on September 18, 2008
So it looks as though the PDs, Ireland’s neo-liberal party, are on the “way to the chopping block”:http://www.irishtimes.com/newspaper/frontpage/2008/0917/1221599424850.html?via=mr. While I disagreed vigorously with most of their policies, I have mildly mixed feelings about this, if only because an uncle of mine was a founding member (and the person who led them up until the disastrous election that precipitated their current state of disrepair). But mostly, I’m posting so that I can link to this wonderful extract from the current leader’s public statement on their future.
Mr Cannon said it was “far from me to pre-empt what that decision might be”. In his opinion, the party had two choices. It could “limp on” into an uncertain future, while elected members were “picked off the edge of the herd like wounded animals”. The other choice was to dissolve so that the party could say: “We have triumphed and in our triumph we are leaving the field with a degree of grace and dignity.”
Far from pre-empting, indeed …
by John Holbo on August 23, 2008
From Powerline: “Being consumed by hate is damaging to your sense of humor.” Well, I have to admit it. I didn’t get the joke myself. Go ahead and read hindrocket’s original post and his somewhat petulant (so it seems to me) update.
I’m trying to figure out the joke’s nub or ‘cracker’ (I’m using humor lingo here!), the necktie-house analogy – which the author now claims was obviously supposed to poke fun at “how weird it seems, to us non-rich people, for someone not to know off the top of his head how many houses he owns” – can simultaneously obviously function by poking fun at the very idea that it seems weird not to know off the top of your head how many houses you own. This is some superfine complex irony conservative minds can parse with ease, which is lost on the plain people of liberalism, e.g. me.
But seriously, folks. I can at least analyze what properties the joke must have, even if I don’t get it: it is some sort of superpositional quantum irony, which depends for its appreciation on a given proposition P – in this case, P = it’s weird not to know how many houses you have – being self-evidently true and absurd at the same time. This superposition can only be maintained so long as the joke is unobserved (except by its author, who does not count as conscious – otherwise why would he have written such a thing?) Once conscious observers, e.g. liberals, took a look-in to see what was going on, the superpositional irony was bound to collapse into a state of grievance. And bob’s your uncle.
I have been obliged to invent a new blog category to cover this circumstance. I apologize for the complication this entails, but the universe is a rich, strange place.
UPDATE: Hey, categories aren’t showing any more, are they? (Am I missing something? Kieran?) Anyway, the category was supposed to be: ‘the water pitcher is both broken and unbroken.’ Get the picture?