The times, they are a-changin' at the stodgy old Federal Reserve. We used to think of it a financial temple from which a priestly caste of economic policy makers would periodically emerge to make oracular pronouncements of the sort depicted in the video of Fed chairman Alan Greenspan bantering with Ron Paul. Now the Fed plans to keep track of social media and the blogosphere to better understand how it's perceived.
[T]he Fed is now evaluating bids for a social media analysis system that will mine data from Facebook, Twitter, YouTube, blogs, and web forums--beginning in December. In order to "handle crisis situations" and "track reach and spread of […] messages and press releases," the project will also identify a number of what they call "key bloggers and influencers" to target with their outreach, and presumably monitoring, efforts.
SAMUEL KUBANI/AFP/Getty Images
Did little Slovakia just exercise its muscle and kill the Euro bailout package?
The Slovaks have spoken! A nation with a population roughly the size the San Francisco area and a GDP of $86 billion has failed to ratify the eurozone's plan for it to contribute $10 billion — about 12 percent of that GDP — to the currency union's bailout plans. This is the latest chapter in a debt-crisis melodrama that's forcing Greece into default and threatening Italy, Spain, and the banks of German, France, and possibly the United States.
Slovakia was the only eurozone country that voted nay. This is from the New York Times:
If nothing else, the unwieldy process underscored how the entire $590 billion euro stability fund, approved by the 16 other members of the euro currency zone, could be held hostage to the domestic politics of one tiny country, in this case Slovakia. It showed as well how a measure intended to increase confidence in the euro zone could instead emerge as a telling example of the shortcomings of a system that relies on an unwieldy group of nations to make and execute difficult decisions.
Demonstrators gather in Downtown Los Angeles for the "Occupy L.A." protest
The Occupy movement has spread its influence so far now that it's inappropriate to limit it to just Occupy Wall Street. Some common cause is also emerging. Occupy Wall Street, which started out on the lawn in front of City Hall, has declared its intent to march on Los Angeles' financial sector this weekend. This is not Burning Man. This is a movement with a mission.
I know, I know — You didn't even know LA had a financial sector, right? It does, but more importantly, the Occupy movement is now focusing on a coherent foe. "We are the 99%" has decided that they're protesting the 1% — and by that they mean the financial elite. Those who control most of the nation's wealth and through their leverage with high finance, have plunged the U.S. and the world (Hello? Greek debt default?) into chaos and misery.
Vehicles pass by a darkened Staples Center on October 10, 2011.
As my new KPCC colleague Eric Richardson reported this morning, NBA commissioner David Stern has decided to cancel the first two weeks of the season, in the face of an ongoing labor impasse. This is going to cost money, in terms of lost ticket sales and the spending that people engage in when they attend games. If more games are cancelled, the costs are going to be significant.
Here's the math, for the sacrificed Lakers and Clippers games at the Staples Center, assuming the cancellation extends throughout the rest of 2011:
- $30 million in ticket sales
- $40 million for everything else
- Grand total: $70 million
As Richardson points out, the $30 million is less relevant than the $40, because the latter is money that won't go to Downtown businesses (the $30 million represents "sunk" costs — money already expended that can't be recovered). The $40 million will get spent elsewhere in the city.
Netflix CEO Reed Hastings has stuck a fork in Qwikster, the briefly lived spinoff of the company's DVD rental business.
Netflix has backtracked on plans to spinoff its DVD-rental business into a separate company, Qwikster — a bad move that has been resoundingly ridiculed everywhere bad moves can be resoundingly ridiculed. The cost is that CEO Reed Hastings now looks like a nincompoop, whereas before the Qwikster debacle he looked like a man who knew the future.
That's part of the problem, of course. Hastings grasped that the DVD business wasn't sustainable over the long haul. The future lay with online streaming. But to build that business, Netflix needs to license more content from TV and movie studios. The game plan was to raise subscriptions to generate the needed revenue and begin to phase out the old DVD business.
Hastings has been speaking directly to customers via Netflix's blog. His message is small miracle of concision in the ongoing hell that has been the needless messing-up of once-beloved, now-embattled Netflix: