Felix Salmon

Why BBVA is good for Simple

Simple began in July 2009, but it took three years before it was ready to actually start sending its debit cards out to members of the public. And now, after just 18 months as a scrappy independent financial-services provider, it’s being bought, for $117 million, by Spanish banking giant BBVA.

Facebook’s horrible, stroke-of-genius IPO

Two years ago, before Facebook went public, I wrote a feature for Wired with the title “For High Tech Companies, Going Public Sucks”. It was illustrated with this Mark Zuckerberg sadface:

Elliott vs Argentina: 3 possible resolutions

Argentina, as everybody knew it would, has gone to the Supreme Court to appeal the bad (and ignoble) ruling against the country by New York’s Second Circuit. The most likely final outcome, still, is that Argentina will default, for the reasons (but not with the timing) I gave last year. But, with this petition, Argentina now has three possible outs.

Is there opportunity in art history?

Last month, at an appearance in Wisconsin, Barack Obama made a mild dig at art history graduates like myself. “A lot of young people no longer see the trades and skilled manufacturing as a viable career,” he said, “but I promise you, folks can make a lot more potentially with skilled manufacturing or the trades than they might with an art history degree.”

Monopolizing bandwidth

Paul Krugman makes a simple but powerful point about Comcast’s acquisition of Time Warner Cable:

How should John Arnold approach pension reform?

The other shoe has dropped in the case of the $3.5 million which the Laura and John Arnold Foundation donated to a PBS series on “pensions in peril”. The recipient of the money, New York PBS affiliate WNET, has given it back. Understanding what’s really going on here, however, isn’t easy, so bear with me on this one.

Pension politics

David Sirota has a very important scoop today: the PBS series “Pension Peril” has secretly* been funded by John Arnold, a billionaire powerbroker with an aggressively anti-pensions political agenda. This looks very bad for PBS — but it’s also bad for Arnold, who generally gets glowing press, and who would seem to have no good reason to have insisted on secrecy when writing the $3.5 million check that made the series possible.

Content economics, part 5: news

Have you heard the news? Janet’s pregnant!

There’s a reason that the first thing you see when you log in to Facebook — the product around which everything else on Facebook revolves — is called the News Feed. And yet, only a relatively small proportion of what you see in your News Feed can really be considered journalism.

Be happy that Stan Fischer worked at Citi

Last week, Justin Fox had a great post entitled “How Economics PhDs Took Over the Federal Reserve”. The first Fed chairman of the modern era was a banker, Marriner Eccles; he was succeeded by Thomas McCabe, who had a bachelor’s degree in economics but whose main qualification was having been the CEO of Scott Paper. Then William McChesney Martin moved over to the Fed from Treasury; he was a former stockbroker and New York Stock Exchange president, and ushered in a new era: