Andrew Shaffer:

Half a century before e-books turned publishing upside down, a different format threatened to destroy the industry.

Here’s a little perspective: In 1939, gas cost 10 cents a gallon at the pump. A movie ticket set you back 20 cents. John Steinbeck’s The Grapes of Wrath, the year’s bestselling hardcover book, was $2.75. For a nation suffering 20 percent unemployment, books were an impossible expense.

But in just one day, Robert de Graff changed that. On June 19, 1939, the tall, dynamic entrepreneur took out a bold, full-page ad in The New York Times: OUT TODAY—THE NEW POCKET BOOKS THAT MAY TRANSFORM NEW YORK’S READING HABITS.

The ad was timed to coincide with the debut of his newest endeavor, an imprint called Pocket Books. Starting with a test run of 10 titles, which included classics as well as modern hits, de Graff planned to unleash tote-able paperbacks on the American market. But it wasn’t just the softcover format that was revolutionary: De Graff was pricing his Pocket Books at a mere 25 cents.

Forecasting Financial Crisis:

Inspired by Google’s PageRank, the authors of a new paper create DebtRank, a measure of connection centrality. The vertical axis in the following diagram shows DebtRank (centrality) the horizontal axis asset shows size relative to the total network and the color indicates fragility/leverage. Institutions such as Wachovia, RBS and Barclays were relatively small but because of their centrality and fragility they imposed big risks on the system.

Shirley Halperin:

“There’s no room on the radio for a new Howard Stern today,” says Tom Leykis. The firebrand talk show host is among the few former FM personalities who could command a Stern-like contract, thanks to stellar ratings in 25 markets over 12 years. But after CBS Radio pulled the plug on his show in 2009 (paying out his $20 million-plus contract), Tom Leykis didn’t jump to a terrestrial station or to satellite, opting instead to create his own Internet radio network symbolically dubbed “The New Normal.” With four fully licensed music stations streaming some 50,000 songs along with his own daily call-in show, 400,000 tuned in during launch week in April and 1.7 million in its first month — “more than the cumulative audiences of 14 Los Angeles radio stations,” Leykis boasts. With a $1 million investment of his own money, he expects to be profitable by the end of the year.

Leykis, 56, says he left his first love not because he couldn’t get paid, but because he believes traditional radio is dying. Thanks to iPods, podcasts and hundreds of satellite stations, radio audiences are getting older (more than a third of talk-radio listeners are 65 and up) and the personalities are aging out of relevance. “KABC’s new show is hosted by Geraldo Rivera, who’s 68; John and Ken [John Kobylt and Ken Chiampou] came on KFI in 1992, Bill Handel in 1988, Rush Limbaugh in 1989,” notes Leykis of the L.A. market’s top English-language stars. The spring chicken, he says with a laugh, is 48-year-old Tim Conway Jr. At 37, KIIS star Ryan Seacrest is actually younger, but it is telling that L.A.’s youth-targeted alt-rock outlet KROQ has had the same morning hosts, Kevin and Bean (Kevin Ryder and Gene Baxter), for more than 20 years. Pop station KAMP’s Carson Daly, 39, first appeared on KROQ in the mid-’90s.

Sebastian Anthony:

A bioengineer and geneticist at Harvard’s Wyss Institute have successfully stored 5.5 petabits of data — around 700 terabytes — in a single gram of DNA, smashing the previous DNA data density record by a thousand times.

The work, carried out by George Church and Sri Kosuri, basically treats DNA as just another digital storage device. Instead of binary data being encoded as magnetic regions on a hard drive platter, strands of DNA that store 96 bits are synthesized, with each of the bases (TGAC) representing a binary value (T and G = 1, A and C = 0).

To read the data stored in DNA, you simply sequence it — just as if you were sequencing the human genome — and convert each of the TGAC bases back into binary. To aid with sequencing, each strand of DNA has a 19-bit address block at the start (the red bits in the image below) — so a whole vat of DNA can be sequenced out of order, and then sorted into usable data using the addresses.

Eduardo Mourao:

Visa uses bribery, blackmail and fear to win contracts.

I built a small credit card company, we have around 500k users and 2k merchants. We focus primarily on the low-income families, our service is free to users, just merchants have to pay (and our price is 60% lower than visa’s) that’s how we could outmaneuver pretty much all the big guys in the employee-benefits market. We are a company of just 12 employees now, we live in the cloud, our costs are just a very tiny fraction of the cost our competition faces, they could never compete with us on a level playing field. They were all screwed and they know it, and we received some buyout offers, which we refused.

Jonathan Landreth:

Ai Weiwei’s studio compound sits behind high, ivy-covered gray brick walls on an isolated street in Beijing’s shabby northeast outskirts. China’s best-known dissident, architect, and creative provocateur, Ai used to travel around the country making art and recording injustice: He helped design Beijing’s famous Bird’s Nest stadium for the 2008 Olympics (before denouncing it as “propaganda”) and fought with authorities in Sichuan province over their handling of the 2008 earthquake, in which thousands of children died. All that stopped, however, when Chinese police imprisoned him in April 2011 on politically motivated charges of tax evasion; when he was finally released after 81 days in custody, he was forbidden from leaving Beijing for a year. (He has since been given permission to travel domestically.) Ai, who lived in New York for much of the 1980s, has become a patron of China’s disaffected urbanites, and here, in his tranquil garden, he holds court, offering advice to the thousands of fans, bloggers, activists, and petitioners who visit from all across China and the world. Despite the government’s relentless attempts to shut him up, Ai is still talking. The first change he would make to Chinese cities? Free the people.

Rex W. Huppke:

A quick review of the long and illustrious career of Facts reveals some of the world’s most cherished absolutes: Gravity makes things fall down; 2 + 2 = 4; the sky is blue.



But for many, Facts’ most memorable moments came in simple day-to-day realities, from a child’s certainty of its mother’s love to the comforting knowledge that a favorite television show would start promptly at 8 p.m.



Over the centuries, Facts became such a prevalent part of most people’s lives that Irish philosopher Edmund Burke once said: “Facts are to the mind what food is to the body.”

To the shock of most sentient beings, Facts died Wednesday, April 18, after a long battle for relevancy with the 24-hour news cycle, blogs and the Internet. Though few expected Facts to pull out of its years-long downward spiral, the official cause of death was from injuries suffered last week when Florida Republican Rep. Allen West steadfastly declared that as many as 81 of his fellow members of theU.S. House of Representatives are communists.

Andrew Hill:

Appropriately for a US election year, the longlist for the 2012 Financial Times and Goldman Sachs Business Book of the Year Award inc­l­udes an array of titles charting the strengths and weaknesses of the American corporate, economic and financial system.

William Silber’s forthcoming biography of form­er Federal Reserve chairman Paul Volcker sits alongside Walter Isaacson’s life of the late Apple chief executive Steve Jobs. The stories of ExxonMobil under Lee Raymond and Rex Tillerson, and Ford under Alan Mulally, are tackled by, respectively, Steve Coll (Private Empire) and Bryce Hoffman (American Icon).

But tales of towering US personalities and companies were outnumbered among the 262 entries by books warning of threats to the world’s biggest economy. In this vein, the longlist includes Luigi Zingales’s warnings about US cronyism (A Capitalism for the People), and Michael Sandel’s dissection of a world where everything is for sale (What Money Can’t Buy). Philip Coggan’s Paper Promises and Why Nations Fail by Daron Acemoglu and James Robinson, each take different long views of the flaws in global fin­ance and the roots of power and prosperity. Guy Lawson’s Octopus focuses on the Bayou hedge fund fraud, a signature scandal of the past decade, while Charles Duhigg (The Pow­er of Habit) and John Coates (The Hour Between Dog and Wolf) explore the scientific secrets of success and failure in financial markets and beyond.

Gail, the actuary:

It is easy to see how sub-prime mortgages blew up Wall Street; it is a little more challenging to see it as the author of the global recession. Why were there economies that had no sub-prime mortgages that experienced even deeper recessions than the United States? Why did those economies go into recession even before the US economy went into recession? Maybe, just maybe, there was something more important going on–more important to the global economy than Wall Street or sub-prime mortgages, like $147 barrel oil, for example. If we know anything about watching the global economy in the last 40 years, we know this: feed it cheap oil, and it runs very smoothly. All of the sudden, give it expensive oil, and it stops in its tracks.

Every major recession in the post-war period has oil’s fingerprints all over it. The 1973 first oil shock led to what was then the deepest post-war recession, at the time. The second OPEC oil shock led to no less than two recessions: 1979 and 1982. And then when Saddam Hussein invaded Kuwait, and left half of its oil fields on fire, and oil spiked to the then unheard-of price of $40 barrel, lo and behold, the industrialized world again fell into recession.



Gee, I wonder what happened to oil prices before this recession. It seems to me that oil prices went from about $30 barrel, at the beginning of 2004, to almost $150 barrel by 2008. Even in real terms, that is, inflation-adjusted, that price increase was over double the price increase of either the first or the second OPEC oil shock. If they had led to devastating recessions, why would not the biggest oil shock of them all, be the obvious culprit for what has been the deepest recession to date?

By Adam Higginbotham:

If everyone had kept quiet, it could have been the most valuable parking spot on earth. Convenient only to the careworn clothing stores clustered in the southern end of downtown Nogales, Ariz., it offered little to shoppers, and mile-long Union Pacific (UNP) trains sometimes cut it off from much of the city for 20 minutes at a time. But the location was perfect: In the middle of the short stretch of East International Street, overshadowed by the blank walls of quiet commercial property, the space was less than 50 feet from the international border with Mexico.

On Aug. 16, 2011, just before 3:30 p.m., three men sat in a white Chevrolet box truck parked near the Food City supermarket on Grand Court Plaza. In the driver’s seat was Anthony Maytorena; at 19, Maytorena already had an impressive criminal record, and a metal brace on one arm as a result of being shot while fleeing from local police three years earlier. Locked in the cargo compartment behind him were two boys from Nogales, Sonora, the Arizona town’s twin city on the other side of the border—Jorge Vargas-Ruiz, 18, and another so young that his name has never been released. Together they drove over to International Street, where two cars were holding the parking spot for them.

Maytorena parked the truck, climbed out, and—watched by a spotter gazing down from high up in the hills on the Sonoran side of the border—sauntered around the corner. Inside, the two teenagers lifted a hatch in the floor of the cargo compartment; beneath, in the steel box that had once contained the truck’s refrigeration unit, was a trapdoor that opened less than a foot above the street.