There are quite a few eBay employees and former employees out there with blogs.
Shri Mahesh has started a Wiki to keep track of them all.
The wiki is here.
If you fit the description, add yourself to the list…
There are quite a few eBay employees and former employees out there with blogs.
Shri Mahesh has started a Wiki to keep track of them all.
The wiki is here.
If you fit the description, add yourself to the list…
Wow. That is some sort of world-record for turning an entire new generation of DRM worthless.
Engadget: Hackers Discover Blu-Ray and HD-DVD Processing Key
Engadget is reporting that the “processing key” for HD-DVD and Blu-Ray have now been cracked. This is a big deal, because unlike previous exploits that were able to copy individual movies, this crack, if true, means that every HD-DVD and Blu-Ray DVD will be able to be ripped.
I have to say, I’m not surprised. The industry has basically an impossible problem when it comes to DRM:
All of the above produce too many openings for hackers to figure out how to “pretend” to be just another player, and thus get the decrypted content. The economic incentive for hackers is just too high, and that combined with a good dose of anger towards the “greedy studios”, and you have a guarantee that eventually, these new standards will be cracked.
I wonder if the movie studios will take Steve Jobs’ & Bill Gates‘ advice and give up on DRM? Unlikely to be sure.
Instead, they will focus their efforts on limiting the rights of legitimate, paying customers while crackers will get access to all of their content for free. Of course, I’m sure there will be the requisite push on law enforcement for “trophy arrests” of some 15-year old somewhere with an archive of 300 Blu-Ray movies (20GB each!) on a server.
Unfortunately, this ruins my theory of who would win the format wars – I thought that the first format to be cracked would win the market, since the increased options for buyers of a cracked format are so much higher than a secure one.
Alas, they seem to both be cracked at the same time, so it’s a dead heat again.
Every Sunday when I check my Tivo lately, I’m reminded that I’ve been watching a lot of television.
It’s not a bad thing, per se. It feels like just about a year or two ago I was lamenting the cancellation of several of my favorites, and feeling like I was doomed to watch random reality shows and American Idol wannabe shows.
But suddenly, in January 2007, I had more shows to watch than time to watch them.
Here’s what I’ve been watching lately (at least, according to my Tivo):
Sunday
Monday
Tuesday
Wednesday
Thursday
Of course, I can’t possibly watch all that during the week, so I catch up on the weekends. Some of the shows are really getting tired, so they are the last to get watched (ER). Some are embarrassing enough that I’m susprised I put them down online for all to see (Desperate Housewives, Smallville). Some are new shows that, if they failed, I wouldn’t shed any tears (30 Rock, Studio 60).
I’d gladly swap some of the above for more HBO shows – they are always my favorite (except for BSG). The Wire, Entourage, Deadwood, and even the aging Sopranos would be welcome.
Rome is probably my biggest suprise of the season – I was lukewarm on season one, and was not sure I’d keep up with season 2, but so far, it has been much faster paced this year.
Feel free to comment here about any of the above shows, or any of the shows you’ve been watching… please, though, don’t tell me I should be watching Lost or Grey’s Anatomy. Sorry. I got tired of Lost in Season 2, and I’ve never had the time to pick up Grey’s. Maybe someday, on iTunes, when there is a dry spell again.
The first question I often get about personal finance and investing is usually about what sources I would recommend for people who are looking to learn more.
It may be surprising, but despite the incredible variety and depth of information available online, some of the best sources for ongoing learning are still regular, printed magazines.
I began reading personal finance magazines around 1994, and over the years I’ve sampled most of the commonly available ones. The following represent my favorites, some of which I have subscribed to for over a decade.
Personal Finance & Investing
Despite the fact that I have subscribed to the above magazines for over twelve years, I still look forward to each issue every month. Over time, I feel like one of the things you learn is to differentiate the trendy, popularity driven material from the real insights. The biggest danger reading investment magazines is that they always feel compelled to explain and promote the latest trends, and in investing any trend is usually a sign of over-investment. Over-investment typically means high costs with low returns.
Business
There are a wide variety of other magazines out there that I have subscribed to from time to time. Kiplingers. Worth. Red Herring. Business 2.0. Entrepreneur. But none of them held my interest for more than a year, and in the end, I find myself coming back to the five I list above.
The Economist is probably the one great, relevant journal that I don’t read regularly. It has a far more global viewpoint, and less actionable investment insight. It’s dense, and I never seem to have time to finish it regularly.
Newspapers
I know this article is called Magazines, but the truth is that some of my favorite periodicals are daily newspapers. I’m going to call out the big three here.
Whew. That took longer than I thought. I’m going to follow this article with a post on the top 10 investment books that I recommend, and then I’ll get into specific topics. More to follow…
Sorry, one last post for the night. This was too cool to pass up.
The Macintosh BU at Microsoft, which was formed after the 1997 Apple/Microsoft alliance, just celebrated their 10th anniversary. Apparently, what greeted them in the morning was gorgeous pixel art:
Of course, it turned out to not be pixel art per-se, but actually 1336 carefully pasted sticky notes on the windows.
I have to hand it to Microsoft, that’s 100% pure engineering culture right there. Glorious. I tip my hat to the team.
The full article about how they designed the sticky note art in Excel and then finished their work is here, on the Mac Mojo blog.
The magic of the modern capital markets. You can invest in anything.
First, you need to turn something into a tradeable security. With derivatives, you can do this with almost anything. London has done it with the weather. The Kyoto Protocol has done it with Carbon Dioxide emissions. Kyoto introduced a “cap and trade” approach to regulating carbon dioxide, similar to the program put in place by the United States in the 1990s to control sulfer dioxide and acid rain. In a cap and trade system, countries limit the total amount of carbon dioxide emissions on a per country basis, and then issue those rights to their companies. Companies can then trade those rights with each other, and even potentially earn “new rights” by putting in place technology and programs to cut existing carbon dioxide emissions.
The Kyoto Protocol currently covers 160 countries, representing approximately 55% of all carbon dioxide emissions globally. The United States, China & India are the most notable signatories missing from the current pact.
Emissions trading has become a big market, and with global warming a hot topic again (sorry, I couldn’t resist), a lot of people have been looking at the carbon dioxide credits as more than just environmental regulation, but as an investment opportunity.
After all, it stands to reason that the right to release a ton of carbon dioxide into the air is not going to get cheaper going forward. And of course, if you buy that right, then some other company can’t, which means you potentially have taken that right off the market… until you sell it.
Now, what most people don’t know is that there is also a voluntary carbon dioxide emissions market here in the US, the Chicago Climate Exchange. There is also now a firm, called XShares, that is investigating creating an ETF based on the exchange.
In other news, UBS has created a new Emissions Index, based on the two European exchanges, which trade about 46% of all the global emissions rights today. There is no ETF for this index, yet, but where there is an index, there is usually an ETF to follow.
I’m going to file this away in my “watch” folder for the time being. Carbon emissions might be a very interesting commodity, since there will be strong secular pressure to limit the rights to emit greenhouse gasses in the future. Also, it stands to reason that lower emission caps in the future will mean increased costs for corporations, which means it might be an interesting diversification play versus the corporate stock & bond markets.
As this blog continues to grow, I try to be very open to advice and suggestions from people who have become regular readers. Today, I got some advice from a friend who, while she hasn’t come clean with me on where her blog is located on the web, has been reading mine regularly.
She told me today that she liked the new aggregated page I made of all my Personal Finance posts to date, now featured in the header of the blog. However, she had a fundamental question about where I get all my information about personal finance, how I learned about these different ideas, and how a person with limited time could learn more.
She suggested I put together a series of posts for people who are interested in personal finance and investing, but aren’t sure where to start.
So, this post is going to be an introduction to a multi-part series on personal finance and investing, based on my own history on the topic. I’ll try to produce posts in the series that cover recommendations on magazines, websites, and books, as well as on basic topics like saving, investing, asset allocation, investment clubs, brokerages, retirement accounts, real estate, derivatives, commodities, and funds. Not necessarily in that order, of course.
I don’t pretend to be an expert in all of these areas, but if through a series of posts I can help people get started on their own personal finance education, I’ll feel like I’ve done a truly good thing with this blog.
As a personal note, I was not one of those people that had an early exposure to personal finance and investing. Although I’d like to think that I learned good personal finance values from my parents and grandparents, when it comes to investing, I didn’t know much about anything other than bank certificates of deposit until college.
Since then, I’ve been mostly self-taught, although now I have had the benefit of coursework at institutions like Stanford and Harvard, direct experience in the venture capital industry, and about fifteen years now of growth and learning.
We’ll see how it goes, and of course, I’m willing to take requests if there are topics people would like to see added to this series. I will try to do at least a few posts a week in the series, and in the end, I’ll group them together on the Personal Finance page for easy reference, as well as link them back here for navigation.
So, a special thank you to Rebecca Nathenson for the great suggestion.
Articles (complete index here):
Who would have guessed that on a random Tuesday in February, Steve Jobs would decide to drop a bomb on the music industry. But that’s what he did today, on the Apple.com website:
There are a lot of good summaries on the web already. Here is the one from Don Dodge, for example. If you are not into reading long missives, I can summarize the article, Powerpoint-style:
For those of you not familiar with Digital Rights Management, DRM is the software that is built to prevent people from illegally copying files, like Music. For the iTunes Store, Apple uses a DRM called FairPlay which limits the number of machines you can play the music on. Right now, there is a lot of legal controversy in Europe over the fact that this DRM also “locks” people into the Apple iPod, because once they buy music on iTunes, they can’t play it on other devices.
This missive from Steve Jobs was unexpected, largely for some pretty significant reasons:
There have been a lot of calls in the industry to give up DRM lately, but a lot of them have to do with the fact that people don’t want to accept a world where Apple controls the entire music industry (which is where it is heading right now). Bill Gates, for example, proclaimed a while ago that he supports a DRM-free approach to music.
Personally, I thought the DRM-free approach was the only way the rest of the industry would be able to crack Apple’s stranglehold on digital music. I see DRM-free music as the natural response to a monopoly, similar to the response of Linux to Windows.
However, now that I read Steve Jobs’ note, it make sense on so many levels for Apple to issue this statement now. In fact, I don’t know why I didn’t see it sooner. By issuing this statement, either:
It’s hard to imagine the music industry embracing a DRM-free world. Fundamentally, they still believe that as copyright-holders, they have the right to control distribution at a fine-grained level to maximize profits. And of course, they are correct, they do have that right.
What they didn’t predict, however, was that attempts to enforce that right would lead to a consolidation of their distribution channels, which would shift market power from them to Apple. And now, they have too choose between a rock (Apple market power) and a hard place (DRM-free music).
I’ll end here with my favorite passage from Steve Jobs’ letter:
The third alternative is to abolish DRMs entirely. Imagine a world where every online store sells DRM-free music encoded in open licensable formats. In such a world, any player can play music purchased from any store, and any store can sell music which is playable on all players. This is clearly the best alternative for consumers, and Apple would embrace it in a heartbeat. If the big four music companies would license Apple their music without the requirement that it be protected with a DRM, we would switch to selling only DRM-free music on our iTunes store. Every iPod ever made will play this DRM-free music.
Why would the big four music companies agree to let Apple and others distribute their music without using DRM systems to protect it? The simplest answer is because DRMs haven’t worked, and may never work, to halt music piracy. Though the big four music companies require that all their music sold online be protected with DRMs, these same music companies continue to sell billions of CDs a year which contain completely unprotected music. That’s right! No DRM system was ever developed for the CD, so all the music distributed on CDs can be easily uploaded to the Internet, then (illegally) downloaded and played on any computer or player.
I couldn’t have said it better myself.
Skype continues to release incredibly great software at a record pace. They have just officially released the new Skype client for Mac OS X, version 2.5.
The new release features:
You can download Skype 2.5 for Mac OS X here.
Jason O. Grady has also found a cool new hack for the new Mac OS X client – 640×480 Video Chat.
You can find the instructions here, in the Skype Garage. Basically, you just edit the config.xml file.
High-quality video calls
Save and close config.xml, restart Skype and do a video call. The remote party should now see your picture in 640×480 resolution, instead of the standard quality 320×240.
To enable high-quality video calls with Skype for Mac, first download the latest version of Skype for Mac. You need version 2.5.0.85 or newer.
Then, quit Skype, navigate to “~/Library/Application Support/Skype/yourskypename/”, i.e go to your home folder, and then the Library folder in it, and then Application Support in Library etc. Find the file called config.xml.
Open the file and find the <video> block that is itself inside the <lib> block. The <video> block probably looks as follows.</video></lib></video>
<video>
<device>Built-in iSight</device>
</video>Now, edit this <video> block, adding capture height and width settings. The block should now look like this.</video>
<video>
<capturewidth>640</capturewidth>
<captureheight>480</captureheight>
<device>Built-in iSight</device>
</video>Note that both parties need a fairly high-end computer (Mac or PC) to get good quality and framerate, plus a good Internet connection.
I’ve got to hand it to Skype. Not every company can produce high quality desktop software for multiple operating systems and still maintain the level of innovation, quality, and speed that Skype does. As a former developer, that tells me that Skype has an outstanding development organization, the right spirit, and the right people to continue to outperform.
I also love the open communication about experimental features like this, through a page like Skype Garage. People think innovating and moving quickly is unique to web development, but the right engineers and the right engineering philosophy can and will leverage the strength of their community to produce great client software as well.
Kudos to the Skype team on another great release.
I caught a very interesting article in this week’s Business Week on a new Currency ETF that launched in September. The original article is here:
Trade Currencies Like a Hedge Fund | Business Week
It doesn’t look like they’ve released the article to the free portion of the site yet, so let me summarize a bit here.
The new PowerShares DB G10 Currency Harvest Fund (Ticker: DBV) has grown to about $180 Million already, allowing individual investors, for the first time, the ability to easily invest in the “long-short trade”. The long-short trade is when you buy the currencies of countries with high interest rates, and you sell short the currencies of countries with low interest rates. Normally, countries with higher rates see their currencies appreciate relative to those with low rates, and this strategy lets you capture the difference. You can think of it as borrowing cheap money (the short against the countries with low rates) to buy investments that pay higher rates (the countries with higher rates).
For example, right now New Zealand is paying interest rates of 7.6%, and Japan is paying just 0.5%.
This trade is a common one, but it’s not without its problems. There have been many times, historically, when large hedge funds used leverage to play this game, only to have the market move against them. Usually, however, the implosion involved big bets in emerging markets.
This fund only invests in the currencies of developed nations with high credit ratings, and employs only 2:1 leverage, so it’s relatively safe.
Here are the current holdings of the fund:
Long Positions:
Short Positions:
The fund is based on the new Deutsche Bank G10 Currency Future Harvest Index, which has been backtested to produce a 11.4% annualized return over the last 10 years. That being said, it’s a new index, and how it will behave in real life may vary.

What is interesting about the index, however, is that it has returned 3.2% more than the S&P 500 over the same time period, but with only half the volatility. Not only that, the carry trade has very little correlation with stocks, so it’s a natural for diversification.
Previous Currency ETFs, launched by Rydex, have allowed investors to buy into individual currencies:
Unfortunately, the structure of these ETFs has built in high fees and spreads, making them poor ways to try and “own” that currency.
If you are interested in the new new PowerShares DB G10 Currency Harvest Fund, be aware that the strategy does have some limitations. As covered in TheStreet.com:
I’m convinced that the strategy has merit, but as with all strategies, there are flaws that should be understood before purchasing.
Higher yields do tend to make a currency more attractive, but that overlooks an important point: Currencies whose interest rates are moving up tend to be strong. A currency starting from a low base interest rate that is headed higher is likely to be a strong currency, but it could be overlooked by the ETF’s strategy.
However, if you are looking for a currency component to your asset allocation, this fund is definitely worth considering. There are some tax considerations as well, because the fund uses futures to do its trading. As a result, it might be best to hold this in a tax-advantaged account, like an IRA.
As someone who has been following the Apple/Microsoft relationship for almost twenty years, this week offered a real first for me – Bill Gates losing his cool in the face of relentless questions about Microsoft Vista vs. Apple Mac OS X.
It starts with this Newsweek interview with Bill Gates about the launch of Vista.
There is no doubt that Bill comes off suprisingly snippy and defensive, and a few blogs have picked up on this. For example, the Open Sources blog at Infoworld had a few things to say about it.
Here is an example of Bill being overly riled up about some fairly run-of-the-mill questioning:
In many of the Vista reviews, even the positive ones, people note that some Vista features are already in the Mac operating system.
You can go through and look at who showed any of these things first, if you care about the facts. If you just want to say, “Steve Jobs invented the world, and then the rest of us came along,” that’s fine. If you’re interested, [Vista development chief] Jim Allchin will be glad to educate you feature by feature what the truth is. I mean, it�s fascinating, maybe we shouldn’t have showed so publicly the stuff we were doing, because we knew how long the new security base was going to take us to get done. Nowadays, security guys break the Mac every single day. Every single day, they come out with a total exploit, your machine can be taken over totally. I dare anybody to do that once a month on the Windows machine. So, yes, it took us longer, and they had what we were doing, user interface-wise. Let’s be realistic, who came up with [the] file, edit, view, help [menu bar]? Do you want to go back to the original Mac and think about where those interface concepts came from?
Hiss. Down Kitty. I have never seen Bill Gates lose his cool like this, certainly not in print. Maybe it’s because Microsoft has been kicked around too long about Vista, and he’s taking it personally. Maybe it’s because, after a while, you’re tired of the guy with 5% market share getting all the adulation when you’re the guy who really won the fight.
Usually, the rule of thumb for PR is to not even acknowledge the second place player. If you do, you almost want to be overly welcoming, showing that you are not threatened at all by the challenger. It’s almost like you want to treat them like a kid brother trying to challenge you to a race. You should be empathetic, just shy of condescending, as if you understand their desire to win, and you want them to be happy, but you know there is no chance of them winning.
Arnold Schwarzenegger did this exactly right during the 2006 California Gubernatorial race to Phil Angelides during the debates.
Bill is normally far more statesmanlike with the press, and measured in his responses. He normally handles Apple questions with aplomb and diplomacy.
Maybe he’s feeling the end of his life in software coming up fast (2008) as he moves to a purely philanthropic role, and he doesn’t like the tenor of the market as he exits. Maybe he genuinely wanted to go out on top, with the Xbox 360, Zune, Vista and Live growing to dominate new markets. Instead, he’s faced with the Nintendo Wii, Apple iPod, Mac OS X, and Google getting all the limelight.
Maybe he’s taking the new Apple commercials just a little too seriously? (I personally like the new ones up on Apple’s Website. The imposter one is just too funny.) Maybe he’s upset because iTunes is still not Vista compatible, and people actually care?
I don’t know, but somehow it makes me feel sad. Despite my affinity for Apple products, I have a lot of respect for Bill Gates, and somehow this type of weakness on public display is just a downer.
Just caught this news tidbit tonight, and had to post.
One of the most anticipated upcoming comic book movies was the new adaptation of Wonder Woman, which was being written by Joss Whedon. Whedon is a cult favorite for shows like “Buffy the Vampire Slayer” and the more recent western/sci-fi series “Firefly” and the following movie “Serenity“.
As Joss Whedon reported on his own blog, Whedonesque:
“You (hopefully) heard it here first: I’m no longer slated to make Wonder Woman,” Whedon wrote. “What? But how? It’s pretty complicated, so bear with me. I had a take on the film that, well, nobody liked. Hey, not that complicated.”
It’s surprising news, especially given the initial optimism that Whedon would be able to take Wonder Woman to production, after a number of failed attempts. He also made comments to the effect that he had never established an idea for a lead actress, likely the number one challenge with a character like Wonder Woman.
You can read more on the SyFy Portal.
Right now, my original post on Harry Potter and the Deathly Hollows (yes, mis-spelled) is driving about one half of all traffic to my blog. Amazing.
Well, more Harry Potter news today.
Two versions. Standard & Deluxe.
They have announced the ship date: July 21st, 2007.
Harry Potter and the Deathly Hallows by J.K. Rowling, the seventh and final book in the best-selling series, has been scheduled for release at 12:01 a.m. on July 21, 2007, it was announced today by Scholastic, the global children’s publishing, education and media company.
I can’t even really imagine how incredibly large the hoopla will be around the event. In fact, hoopla is not the right word. (Is it even really a word?) Celebration. Chaos. Pandemonium.
This is bigger news than the announcement that the actor who plays Harry Potter in the movies, Daniel Radcliffe, is going to be appearing naked in the revival of the play Equus in London starting February 27th. Yes, you read that right.
You can already pre-order the book. Borders is actually running a “Severus Snape: Friend or Foe” campaign to drum up excitement (like they need to).
The movie for Harry Potter 5, The Order of the Phoenix, opens the week before, on July 13th.
Pandemonium.
In case you were hurting for a cute picture of Joseph at 3 Months old.

Part of my promise to post more “baby & puppy” pictures to the blog.
It looks like the US Mint is adjusting prices significantly in 2007 to account for the inclusion of the new Presidential $1 Dollar Coins in the annual sets, and the increased cost of many of the base and precious metals.
Quoted from their new answers site:
You may notice price changes on some of our recurring products this year. These changes, both increases and decreases, can be attributed to several factors:
- Many of our annual sets have grown to include Presidential $1 Coins.
- The cost of the base metals that make up many of our coins has increased significantly over the past several years.
Opportunities have been identified to increase customer value by reducing product prices where possible.
Below is a list of current product prices, followed by the change from last year’s price.
- United States Mint Proof Set – $26.95 (+$4.00)
- United States Mint Silver Proof Set – $44.95 (+$7.00)
- United States Mint 50 State Quarters Proof Set – $13.95 (-$2.00)
- United States Mint 50 State Quarters Silver Proof Set – $25.95 (+$2.00)
- United States Mint Uncirculated Set – $22.95 (+$6.00)
- Golden Dollar 250-Coin Bag – $319.95 (-$27.05)
- Golden Dollar 25-Coin Roll – $35.95 (+$0.45)
- 50 State Quarters 1,000-Coin Bag – $309.95 (+$9.95)
- 50 State Quarters 100-Coin Bag – $32.95 (-$2.55)
- 50 State Quarters Two-Roll Set – $32.95 (+$0.95)
- Kennedy Half-Dollar 200-Coin Bag – $130.95 (-$4.05)
- Kennedy Half-Dollar Two-Roll Set – $32.95 (-$2.55)
- 50 State Quarters First Day Coin Covers – $14.95 (-$5.00)
- Collecting America’s Coins: Beginner Basics – $11.95 (-$2.55)
The price changes are most noticeable around the precious metal coins, particularly the silver proof sets. It will be interesting to see how prices adjust on the open market. I noticed last week that the price of silver proof sets on eBay hadn’t yet adjusted to these new prices.
More information can be found on the US Mint website.