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Hollywood is shocked — Shocked! — that it lost SOPA battle
At The Wrap, Sharon Waxman lays into Hollywood for not being able to convince Congress that the Stop Online Piracy Act (SOPA) was a worthy undertaking:
The messaging industry never had control of the message.
The tech guys found a simple, shareable idea -- the Stop Online Piracy Act is Censorship -- made it viral, and made it stick.
Hollywood had Chris Dodd and a press release. Silicon Valley had Facebook.
That's pretty well put. But of course it doesn't really get to the root of the issue, which is that California's two leviathan businesses — entertainment and tech — are running away from each other way faster than they're running together. And when it comes to the race for future economic viability and the hearts and minds of consumers, only tech is running in the right direction.
Jerry Yang resigns from Yahoo, the tech company that never was
Yahoo co-founder and chairman (and former CEO) Jerry Yang has resigned completely from Yahoo. The Wall Street Journal has a succinct explanation why:
Mr. Yang's exit is the latest chapter for Yahoo and underlines the widening gap between old Internet companies and newer ones. Yahoo was part of an earlier crop of Web companies from the 1990s that helped spark the dot-com boom and came of age as users world-wide began going online.
But after riding that wave, new companies such as Google Inc. and Facebook Inc.—often with younger leaders like 27-year-old Mark Zuckerberg at Facebook—came to prominence with Web technologies such as search and social networking, leaving older firms like Yahoo struggling to catch up.
Those two paragraphs, in their way, explain the precise problem with Yahoo: it isn't a tech company. Rather, it's a media company and always really has been. Yahoo was conceived in the Web 1.0 world of unruly distraction and idealistic alternatives to legacy media, especially television.
The Federal Reserve is a hedge fund that pays its employees NOTHING!
The New York Times' Steven Davidoff — the Deal Professor — argues that the Federal Reserve is actually the world's most successful hedge fund. But it's not like any other hedge fund. It creates its own money and doesn't care about profits (hedge funds borrow lots of other people's money and are OBSESSED with profits). It also pays its employees squat for making about $77 billion in 2011.
By the usual hedge fund rule of "2 and 20" — a 2 percent management fee plus 20 percent of the profits — the Fed's staff should be dividing up more than $14 billion on profits, exclusive of whatever it might charge to run $3 trillion in assets (2 percent of that would be $60 billion).
I call the Fed a hedge fund because it is operating like one, leveraging its balance sheet to earn huge profits. The main difference between a hedge fund and the Fed is that the Fed effectively creates its own money, so it doesn’t have any borrowing costs, meaning yet more profits. Remarkably, the Fed’s profits are also an afterthought. The Fed is trying to stabilize and increase the United States economy in the wake of the financial crisis, and its profits are a nice byproduct.
Still, these earnings blow away any other hedge fund profits.
The Fed employees who manage this operation receive a federal salary for their efforts. The money is well above the pay of the average American but still relatively modest compared with those in the financial industry. The top salary class at the Federal Reserve has a maximum of $205,570 a year. Ben S. Bernanke, the chairman of the Federal Reserve, earns $199,700 a year, while the other members of the Federal Reserve board earn $179,700.
Dylan Ratigan's 'Greedy Bastards' at KPCC's Crawford Family Forum
Last night, I had the distinct pleasure of talking with MSNBC's Dylan Ratigan about his new book, "Greedy Bastards: How We Can Stop Corporate Communists, Banksters, and Other Vampires from Sucking America Dry." We had a full house at the Crawford Family Forum. The conversation was lively. The questions from the audience were great. And Ratigan didn't even remotely hold back. We were delighted that we could partner with LA's own Rare Bird Lit to make the event happen.
The book consists of Ratigan's take on a variety of challenges currently facing the country, all brought on by what we decided should be called "greedy bastardism" — there's a bit of the greedy bastard in all of us, but some greedy bastards are greedier than others. For what it's worth, I pointed out that Ratigan is in good company with his indictment of the greedy bastards. He's very upset about how greedy bastards gave us the financial crisis and are wrecking the country. In the aftermath of the Great Depression, John Steinbeck was equally enraged. And even though he would go on to write the "Grapes of Wrath," he thought that the work of journalism was the best way to make his immediate case again the perpetrators of America's misery:
Steven Cohen wants to buy the Dodgers, but people who worked for him keep getting arrested
One of the potential bidders for the Dodgers, due to be sold out of bankruptcy by April 30, is Steven Cohen, a secretive and monumentally successfully hedge fund billionaire. I've already written about how he made his money. I've also speculated on why he might want the Dodgers. What I haven't dealt with is that possibility that he could wind up in jail.
That's probably overstating the case. However, Cohen's firm, SAC Capital Advisors, has seen a number of former employees get in hot water with the Securities and Exchange Commission over insider trading. And the heat just got turned up a few notches. As part of an ongoing investigation into insider trading at hedge funds, the FBI has arrested three SAC Capital alumni (and they aren't the first to face prosecution). This is from CBNC's John Carney: