(Roughly) Daily

Posts Tagged ‘scrapbook

“A firm’s income statement may be likened to a bikini- what it reveals is interesting but what it conceals is vital”*…

 

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A recent (Roughly) Daily noted (by way of a quote from James Surowiecki) that “the challenge for capitalism is that the things that breed trust also breed the environment for fraud.”  A painful recent example was, the failure of credit ratings agencies honestly to assess the risk of derivatives being traded against home mortgages, which contributed mightily to the crash that occasioned The Great Recession.

But, as Richard Brooks argues, there’s a bigger and more pervasive problem still lurking:  accountancy used to be boring – and safe.  Today it’s neither.  Have the ‘big four’ firms become too cosy with the system they’re supposed to be keeping in check?  Are we in for Enron all over again, only this time on the financial system-wide basis?

The demise of sound accounting became a critical cause of the early 21st-century financial crisis. Auditing limited companies, made mandatory in Britain around a hundred years earlier, was intended as a check on the so-called “principal/agent problem” inherent in the corporate form of business. As Adam Smith once pointed out, “managers of other people’s money” could not be trusted to be as prudent with it as they were with their own. When late-20th-century bankers began gambling with eye-watering amounts of other people’s money, good accounting became more important than ever. But the bean counters now had more commercial priorities and – with limited liability of their own – less fear for the consequences of failure. “Negligence and profusion,” as Smith foretold, duly ensued.

After the fall of Lehman Brothers brought economies to their knees in 2008, it was apparent that Ernst & Young’s audits of that bank had been all but worthless. Similar failures on the other side of the Atlantic proved that balance sheets everywhere were full of dross signed off as gold. The chairman of HBOS, arguably Britain’s most dubious lender of the boom years, explained to a subsequent parliamentary enquiry: “I met alone with the auditors – the two main partners – at least once a year, and, in our meeting, they could air anything that they found difficult. Although we had interesting discussions – they were very helpful about the business – there were never any issues raised.”

This insouciance typified the state auditing had reached. Subsequent investigations showed that rank-and-file auditors at KPMG had indeed questioned how much the bank was setting aside for losses. But such unhelpful matters were not something for the senior partners to bother about when their firm was pocketing handsome consulting income – £45m on top of its £56m audit fees over about seven years – and the junior bean counters’ concerns were not followed up by their superiors.

Half a century earlier, economist JK Galbraith had ended his landmark history of the 1929 Great Crash by warning of the reluctance of “men of business” to speak up “if it means disturbance of orderly business and convenience in the present”. (In this, he thought, “at least equally with communism, lies the threat to capitalism”.) Galbraith could have been prophesying accountancy a few decades later, now led by men of business rather than watchdogs of business…

A chilling, but important report: “The financial scandal no one is talking about.”

* Burton G. Malkiel

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As we count beans, we might recall that it was on this date in 1873 that Samuel Clemens (the author known as Mark Twain) received a U.S. patent, his second, for a self-pasting scrapbook (No. 140,245).  His creation used a dried adhesive on its pages so that users need only moisten a page in order to attach pictures.

In 1871, Clemens had scored his first patent, for “an Improvement in Adjustable and Detachable Straps for Garments”–an adjustable strap that could be used to tighten shirts at the waist that was later used on women’s corsets, and is considered by many to be the precursor of the adjustable bra strap.  He earned his third patent in 1875 for a history trivia game,“Mark Twain’s Memory-Builder Game.”

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Written by LW

June 24, 2018 at 1:01 am

“Besides black art, there is only automation and mechanization”*…

 

THE AUTOMATIC MOTORIST, a British short film from 1911, wants you to avoid self-driving cars at all costs. In it, a robot chauffeur is developed to drive a newly wedded couple to their honeymoon destination. But this robot malfunctions, and all of a sudden the couple is marooned in outer space (and then sinking underwater, and then flying through the sky—it’s complicated)…

More on the film and its maker at “This Bizarre 1911 Film Warns of the Perils of Self-Driving Cars.

* Federico Garcia Lorca

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As we keep our eyes on the road, we might recall that it was on this date in 1873 that Samuel Clemens (the author known as Mark Twain) received a U.S. patent, his second, for a self-pasting Scrapbook (No. 140,245).  His creation used a dried adhesive on its pages so that users need only moisten a page in order to attach pictures.

In 1871, Clemens had scored his first patent, for “an Improvement in Adjustable and Detachable Straps for Garments”–an adjustable strap that could be used to tighten shirts at the waist that was later used on women’s corsets, and is considered by many to be the precursor of the adjustable bra strap.  He earned his third patent in 1875 for a history trivia game,“Mark Twain’s Memory-Builder Game.”

 source

 

Written by LW

June 24, 2017 at 1:01 am

Writing with scissors…

 

Over at the New York Review of Books, Christopher Benfey has a fascinating– and illuminating– review of Ellen Gruber Garvey’s Writing with Scissors: American Scrapbooks from the Civil War to the Harlem Renaissance, in which the author makes the case that scrapbooks—which everyone seems to have kept during the nineteenth century—“are the direct ancestors of our digital information management.”

There are examples of politically-focused compendia (Garvey’s primary interest), but also wonderful tastes of more artistic applications:  Emily Dickinson, Walt Whitman… and Mark Twain:

Mark Twain was perhaps the king of American scrapbook culture. According to the OED, he was the first writer to use “scrapbook” as a verb, writing in 1881 about the origins of his book A Tramp Abroad, “I scrap-booked these reports during several months.” Prolific in inventing ways to lose money, especially in his attempts to predict how books would be published in the future (not, he found to his chagrin, with type fashioned from clay), Twain successfully marketed his own patented design for a more efficient scrapbook, outfitted with no-muss adhesive pages and an index awaiting entries. Twain’s scrapbook can be seen as the ancestor of the lavish “Keeping Memories Alive” scrapbook industry today, with its glitter and fluff and hobby stores…

Twain’s loose and baggy non-fiction books Roughing It, The Innocents Abroad, and A Tramp Abroad were assembled from his own carefully maintained travel scrapbooks, and retain some of the pleasingly serendipitous and fragmented feel of life on the road.

Still, as Twain’s buddy William Dean Howells noted, “anyone may compose a scrapbook, and offer it to the public with nothing like Mark Twain’s good-fortune. Everything seems to depend upon the nature of the scraps, after all.”

Readers can find the whole story (before they hop over to Pinterest) at “Scrapbook Nation.”

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As we reach for the paste, we might recall that it was on this date in 1750 that the first professional theatrical production of a Shakespeare play– an “altered” version of Richard III— was mounted in New York City at its first formal performance space, The Theater on Nassau Street.  Sitting just east of Broadway, it was a two-story wooden hall with a capacity of about 280.  Actor-managers Walter Murray and Thomas Kean set up shop there, and opened with the Bard.  But their repertory also included the first documented performance of a musical in New York — John Gay’s The Beggars Opera, which they premiered on December 3rd of that same year.

The site of the theater in 2004

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Totally random, man!…

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Edward Lorenz, a pioneer of Chaos Theory, famously observed in a 1963 paper that the flap of a butterfly’s wings could ultimately determine the weather thousands of miles away and days later.

Now, thanks for the ever-extraordinary Exploratorium, readers can simulate their own butterflies, and watch them interact with “strange attractors.”

Try it here.

As we sidle up to the stochastic, we might recall that it was on this date in 1873 that Samuel Clemens (AKA Mark Twain) received a U.S. patent (No. 140,245) for a self-pasting scrapbook– which was popular enough ultimately to sell 25,000 copies.  Two years earlier the innovative author had received his first patent– for “An Improvement in Adjustable and Detachable Garment Straps” (No.121,992– used for shirts, underpants, and women’s corsets).  Later (in 1885) he patented a history trivia game.

The Self-Pasting Scrapbook (source)

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