Fair warning: This article will piss off a lot of you.
I can say that with confidence because it’s about Peter Thiel. And Thiel – the PayPal co-founder, hedge fund manager and venture capitalist – not only has a special talent for making money, he has a special talent for making people furious.
Some people are contrarian for the sake of getting headlines or outsmarting the markets. For Thiel, it’s simply how he views the world. Of course a side benefit for the natural contrarian is it frequently leads to things like headlines and money.
Consider the 2000 Nasdaq crash. Thiel was one of the few who saw in coming. There’s a famous story about PayPal’s March 2000 venture capital round. The offer was “only” at a $500 million-or-so valuation. Nearly everyone on the board and the management team balked, except Thiel who calmly told the room that this was a bubble at its peak, and the company needed to take every dime it could right now. That’s how close PayPal came to being dot com roadkill a la WebVan or Pets.com.
And after the crash, Thiel insisted there hadn’t really been a crash: He argued the equity bubble had simply shifted onto the housing market. Thiel was so convinced of this thesis that until recently, he refused to buy property, despite his soaring personal net worth. And, again, he was right.
So Friday, as I sat with Thiel in his San Francisco home that he finally owns, I was curious what he thinks of the current Web frenzy. Not surprisingly, another Internet bubble seemed the farthest thing from his mind. But, he argued, America is under the spell of a bubble of a very different kind. Is it an emerging markets bubble? You could argue that, Thiel says, but he also notes that with half of the world’s population surging to modernity, it’s hard to argue the emerging world is overvalued.
Instead, for Thiel, the bubble that has taken the place of housing is the higher education bubble. “A true bubble is when something is over-valued and intensely believed,” he says. “Education may be the only thing people still believe in in the United States. To question education is really dangerous. It is the absolute taboo. It’s like telling the world there’s no Santa Claus.”
Tech Crunch
April 11, 2011
April 5, 2011
April 1, 2011
March 29, 2011
Top 10 Dying Industries
A new analysis by research firm IBIS World looks at 10 industries that appear to be dying. The list isn’t exactly shocking, but it represents a mix of sectors that are being left behind by technology or have been hurt by cheaper overseas competition.
The biggest industry profiled by IBISWorld is wired telecom carriers, largely being supplanted by cellphones and the Internet. The dominance of the Web and digital media also puts Newspaper publishers, record stores and video-rental companies on the list. Meanwhile, photofinishing also takes its place among the top 10 dying industries thanks to the growing influence of digital photography.
Cheap imports are blamed for a decline in mills and apparel manufacturers. Companies that rent formal wear are also counted among dying industries amid both competition from abroad and lower prices making owning your own formal wear a more attractive option than renting.
The only clear recession casualty that makes the list is manufactured home dealers. The housing boom led to a surge in the industry, but now years after the bubble burst the sector has continued to struggle.
The full list is below:
The Wall Street Journal
The biggest industry profiled by IBISWorld is wired telecom carriers, largely being supplanted by cellphones and the Internet. The dominance of the Web and digital media also puts Newspaper publishers, record stores and video-rental companies on the list. Meanwhile, photofinishing also takes its place among the top 10 dying industries thanks to the growing influence of digital photography.
Cheap imports are blamed for a decline in mills and apparel manufacturers. Companies that rent formal wear are also counted among dying industries amid both competition from abroad and lower prices making owning your own formal wear a more attractive option than renting.
The only clear recession casualty that makes the list is manufactured home dealers. The housing boom led to a surge in the industry, but now years after the bubble burst the sector has continued to struggle.
The full list is below:
The Wall Street Journal
March 28, 2011
Paul Baran, Internet Pioneer, Dies at 84
Paul Baran, an engineer who helped create the technical underpinnings for the Arpanet, the government-sponsored precursor to today’s Internet, died Saturday night at his home in Palo Alto, Calif. He was 84.
In the early 1960s, while working at the RAND Corporation in Santa Monica, Calif., Mr. Baran outlined the fundamentals for packaging data into discrete bundles, which he called “message blocks.” The bundles are then sent on various paths around a network and reassembled at their destination. Such a plan is known as “packet switching.”
New York Times
Wikipedia
In the early 1960s, while working at the RAND Corporation in Santa Monica, Calif., Mr. Baran outlined the fundamentals for packaging data into discrete bundles, which he called “message blocks.” The bundles are then sent on various paths around a network and reassembled at their destination. Such a plan is known as “packet switching.”
New York Times
Wikipedia
March 25, 2011
March 22, 2011
March 15, 2011
Japan quake shortened length of days on Earth: NASA
The massive earthquake that struck Japan last Friday was so powerful that it accelerated the Earth's rotation speed, shortening the length of the day by 1.8 microseconds, a new analysis by NASA has claimed.
According to scientists at the US space agency, the 8.9-magnitude quake shifted the way the Earth's mass is distributed, which made the planet spin a little faster, cutting the 24-hour day by an estimated 1.8 microseconds. That is less than two millionths of one second.
The initial data suggested that the quake moved Japan's main island about eight feet and shifted the Earth's figure axis, around which the Earth's mass is balanced, by about 17 centimetres, said Richard Gross, a geophysicist at NASA's Jet Propulsion Laboratory in Pasadena, California.
Earlier, scientists have estimated that the quake has shortened the day by 1.6 microseconds.
IndianExpress.com
According to scientists at the US space agency, the 8.9-magnitude quake shifted the way the Earth's mass is distributed, which made the planet spin a little faster, cutting the 24-hour day by an estimated 1.8 microseconds. That is less than two millionths of one second.
The initial data suggested that the quake moved Japan's main island about eight feet and shifted the Earth's figure axis, around which the Earth's mass is balanced, by about 17 centimetres, said Richard Gross, a geophysicist at NASA's Jet Propulsion Laboratory in Pasadena, California.
Earlier, scientists have estimated that the quake has shortened the day by 1.6 microseconds.
IndianExpress.com
March 7, 2011
Too Much Information Makes You Make Bad Choices
The problem has been creeping up on us for a long time. In the 17th century Leibniz bemoaned the “horrible mass of books which keeps on growing,” and in 1729 Alexander Pope warned of “a deluge of authors cover[ing] the land,” as James Gleick describes in his new book, The Information. But the consequences were thought to be emotional and psychological, chiefly anxiety about being unable to absorb even a small fraction of what’s out there. Indeed, the Oxford English Dictionary added “information fatigue” in 2009. But as information finds more ways to reach us, more often, more insistently than ever before, another consequence is becoming alarmingly clear: trying to drink from a firehose of information has harmful cognitive effects. And nowhere are those effects clearer, and more worrying, than in our ability to make smart, creative, successful decisions.
Newsweek
Newsweek
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