Monday, November 11, 2024

10 years ago at the blog – – it is now officially too late to be early.

Nothing like going back and reading the original transcript. (Plus original comments)

The wonderful thing about long-range predictions is that, by the time you can actually check them for accuracy, everyone has lost interest and is busy listening to your new round of long-range predictions. In this case we can't say that the claim was wrong (the Ted Talker gave himself a generous upper bound), but we can say that a general cure for cancer will not come faster than he predicted. That's an important point because many people consider it axiomatic that technological progress almost always happens faster than the experts predicted.

It's an idea so deeply held that people, particularly journalists (who, let's be frank, have an ulterior motive for going along with the story) often treat these conceptual IOUs as actual money in the bank, despite a long history of unpaid debts.

To be clear, we have and continue make enormous progress in the fight against cancer it is one of those fields where pretty much every year sees substantial advances, but it is also perhaps the canonical example of a problem that has shown again and again the dangers of hubris.

Wednesday, October 15, 2014

Assuming I didn't lose you at "TED Talk"

I need to do more research before I wade into this (or convince Joseph to do it for me), but even with the 10 to 50 year wiggle room, talk of having absolutely total confidence makes me nervous.

[GUY] RAZ: Which they did, an amazing scientific feat. They mapped the code that makes up all human DNA. Now they're still trying to figure out what it means, but they already know what it could mean for the future.

(SOUNDBITE OF TED TALK)

RESNICK: The world has completely changed and none of you know about it.

RAZ: So how is it going to change the world?

RESNICK: In a bunch of ways. The good news is it's going to help us immensely in treating cancer 'cause cancer is nothing more than a disease of the genome. It's a disease where one cell has certain changes, which cause it to get a little bit worse and then it reproduces. And by the time you've got a solid tumor, you've got this really heterogeneous population of cancerous cells. And if you sequence their genomes, they're a mess. And so right now, prior to genome sequencing, we're taking wild guesses at what the molecular basis of one's cancer is. And now going forward, what we're going to do is say, forget all of that, what is happening at the molecular level because this drug can target only those cancers that have the BRAF mutation, as an example.

RAZ: So where is it headed? What can you imagine in 10 or 20 years or beyond?

RESNICK: I think we will cure cancer. Genomics and sequencing at large will ultimately cure cancer. Whether that happens in 10 years or 50 years or more is difficult to say.

RAZ: That's incredible. I mean, you can say that with total confidence?

RESNICK: Absolutely. At some point, we'll snuff it out. I mean, people will still develop cancer, certainly, unless we get into genetic engineering of humans, which is something we ought to talk about, but it will be curable.

 

Friday, November 8, 2024

“I feel like I’m the wellness Lorax,”

I obviously have no special insight into what goes on in the minds of the rich, but I have to assume that in a society that bends over backwards to meet your every need, being told that you have to grow old and die just like everyone else must be particularly exasperating.

Mark Ellwood writing for Businessweek:

Not everyone feels so feel-good about all this pricey prescription. “I feel like I’m the wellness Lorax,” says Rina Raphael, a journalist who writes the Well to Do newsletter. “I’m always saying, ‘This is not going to work.’ So much of this is just an exercise in psychology, making people feel better about what they’re doing.”

If these services work, she argues, it’s because they reaffirm established habits. Wealthy acolytes are already able and willing to take care of their health. It’s the willpower placebo effect; even putting a supplement into your basket at the supermarket, Raphael notes, has been shown to give a boost to the system. “Here’s a news flash: You don’t need any of this. Everyone knows exactly what they need to do for their health. Eat a balanced diet, get some movement in, try to decrease your stress. It’s not rocket science.” 

...

The two-story Continuum space was formerly a DavidBartonGym and, later, a Peloton studio; now, Halevy proudly shows off the flotation tank in a sensory-deprivation cupboard, artfully surrounded by plants, and a pair of ice baths. “We would never call this a gym,” he says. “We’re not something else you’re trying to cram into your day. It is a destination.” His membership is currently capped at 250 at the New York location. Outposts in Miami and Los Angeles are nearing confirmation. Each member pays a $10,000 induction fee, then $10,000 per month for unlimited access to physiotherapists, massages and those plunge baths, as well as “performance coaches,” known elsewhere as personal trainers.  

I always find my time in the sensory deprivation tank is more fulfilling knowing I'm surrounded by plants I can't see or smell.

And now for a different take on the end of aging from Mitchell and Webb.

Thursday, November 7, 2024

Four years ago at the blog I meant to write a "ten years ago at the blog"

Ten years ago at the blog we had a post on a trick for cooking banking metrics based on combining different data sources that mature at different rates.

Four years ago I pointed out this example to Kaiser Fung who incorporated it in one of his posts, and I decided that would be a good time to re-up the original post. Then I forgot about it.

Until today.

Friday, November 7, 2014

Speed boating

Back when I was in banking, there was a term that got batted around quite a bit called speed-boating. The expression was derived from the way a fast-traveling boat can, for a while, outrun its own wake . As long as a certain speed is maintained, the boat will travel smoothly. However, if the boat suddenly slows down it can be swamped when its wake catches up with it.

Here's how the analogy worked in banking. When you are in the business of lending money, both regulators and investors like to keep track of how well you are doing at getting people to pay their loans back. To do this, they would look at the charge-off rate. At the risk of oversimplifying, this rate was basically the number of loans that went bad divided by the total number of accounts that were open during the period in question.

Obviously, if you booked an account and it went bad, this would add one to both the numerator and the denominator which would push your rate closer to 100%. So you would think that it would always be in the banker's best interest to avoid loans that are going to go bad.

The flaw, or at least the loophole, in this assumption is the fact that the ones are not added at the same time. Even in the extreme cases where the customers never make a payment, the loan is not considered bad for a certain interval, generally 90 days or more. If the customers make a few small payments, this could stretch out for six months or year.

Let's say I book an account that goes delinquent after one year. That was a bad deal for the bank – – it lost money due to that decision – – but for one year, having that account actually lowered the bank's charge-off rate. Eventually, of course, this will catch up with the bank, but the reckoning can be delayed if the bank continues to book these bad accounts at an increasing rate.

As with many of our posts, the moral of the story is that numbers don't always mean what you think they mean. You will often see someone pull out a statistic to settle an argument -- "How can you say the business model is unstable? See how long their charge-off rate is?" -- but without understanding the number and knowing its context, you can't really say anything meaningful with it.





Wednesday, November 6, 2024

The World's Greatest 404 Page

From the Financial Times:



Tuesday, November 5, 2024

November 5th, 2024

Looks like it's time to wrap things up on the election. We have a few threads with some posts still sitting in the scheduled or draft folders. There's definitely more to say about what's going on at the New York Times and about Elon's misadventures as a political operative, though that's really more a part of our ongoing Musk megathread.

Most of our election blogging over the past year or so has been anecdotes and snapshots, Gathering data in case we want to do a bigger picture retrospective once the dust has settled. I had something like that in mind for 2016 but the outcome of that election was so shocking that I never had the heart to get around to it. This time, regardless of what happens, I am not going to be surprised.

As for the models, N = 0

This is an unprecedented election along numerous dimensions. We have never had one of the two major parties openly embraced fascism. We've never had an issue like Dobbs, though Brown v. Board of Education does come close. We've never had a race with this many upheavals or a press this dysfunctional. We've never had a gap this large between perception and reality in terms of public policy. This is only a partial list.

Add to that the growing concerns over the state of political polling and the number of anomalies we have already witnessed. We don't know where we stand and if we did, we still wouldn't know how things might change at the last minute. (And, yes, experts will tell you that voters don't change their minds at the last minute. They know this because voters haven't done so in previous elections. See the previous paragraph.)

The blog will also be on revisionism watch. No matter how events unfold over the next few days, there will be a great number of famous and highly paid people who will do their best to make us forget how wrong they got things. We are going to do our best to make that difficult for them.

So, if you haven't already, vote then turn off the news (it will only raise your blood pressure) and watch a good movie. Here's a suggestion.

Sherlock Jr - 1924

Monday, November 4, 2024

Josh Marshall on the difference between close and uncertain

This has been a recurring theme of the discussions Joseph and I have been having about the election. When the question of how things were going came up in conversations with friends and co-workers, my standard response has been that there were plausible scenarios where either candidate not only wins, but wins by bigger margins than any of the experts have been predicting. 

From Talking Points Memo:

I’ve made this point a few times in recent weeks, here and on the podcast. I’m going to make the point again because I think it’s critical for understanding this election nine days out. We keep hearing that this is the closest election in decades. Polls say that’s right. At least 5 of the 7 swing states are within a single percentage point — fairly meaningless margins statistically. National poll averages are between one and two points — right on the cusp of where most believe a Democratic Electoral College victory becomes possible. But I don’t think that’s the right way to look at it. What we have is a high uncertainty election. That’s not the same thing. There’s every chance that most or every race that looks close will veer more or less uniformly in one direction. And that wouldn’t necessarily be because of one late-breaking story, some great decision by one of the candidates or even undecideds all “breaking” in one way. It could simply be because the dominant understanding of the race and the electorate was just a bit off and had been all along.

Even more than usual this year our understanding of this race, from polls, from dominant media narratives, understandings of what happened in the past two elections, is based on assumptions that may simply be wrong. In my way of looking at it, there are a small number of interlocking assumptions about the electorate that make up our understanding of this race. There are plausible arguments that each is wrong. That makes the outcome very uncertain. It also creates a lot of avenues for wishful or motivated thinking.

...

Finally, isn’t this how it always is? Electoral fog of war, the inherent uncertainty of knowing how a vast national community of hundreds of millions of people is going to make decisions at the ballot box? Sort of. But not entirely. I think there’s more uncertainty than usual because of 1) rapid changes in the polling industry in response to evolving technology, 2) methodological changes in response to polls twice underestimating Donald Trump’s electoral strength, and 3) the steep and inherent difficulties of separating what about the 2020 election was embedded electoral trends and what was the COVID pandemic. So yes, I really do think there are more question marks, more debatable assumptions packaged into the analyses than usual.


Friday, November 1, 2024

Twelve years ago on the blog -- the war on data still seems pretty relevant

Dharna Noor writing for the Guardian:

Climate experts fear Donald Trump will follow a blueprint created by his allies to gut the National Oceanic and Atmospheric Administration (Noaa), disbanding its work on climate science and tailoring its operations to business interests.

Joe Biden’s presidency has increased the profile of the science-based federal agency but its future has been put in doubt if Trump wins a second term and at a time when climate impacts continue to worsen.

The plan to “break up Noaa is laid out in the Project 2025 document written by more than 350 rightwingers and helmed by the Heritage Foundation. Called the Mandate for Leadership: The Conservative Promise, it is meant to guide the first 180 days of presidency for an incoming Republican president.

The document bears the fingerprints of Trump allies, including Johnny McEntee, who was one of Trump’s closest aides and is a senior adviser to Project 2025. “The National Oceanographic [sic] and Atmospheric Administration (Noaa) should be dismantled and many of its functions eliminated, sent to other agencies, privatized, or placed under the control of states and territories,” the proposal says.


This picks up on a longstanding push from the Trump administration and its allies.

Charles Pierce writing in 2017:

So, anyway, on Tuesday, chairman Smith organized his committee for the coming session. In his opening statement, it became clear that age doth not wither, nor custom stale, his infinite supply of pure Krazee. In his opening statement, Smith made it clear that NOAA is in his sights again, and that he still believes that scientists are conniving to impoverish Good Old Ordinary Americans with their science-y trickeration. But not ol' Lamar Smith. He's got their number. The committee's Tuesday meeting was titled, and I am not kidding about this, "Making the EPA Great Again."

"The Science Advisory Board provides critical feedback to the EPA on its proposals," said Smith in his opening statement, in a way that wouldn't make anyone suspect that he's a little paranoid on the subject. "But in recent years, SAB experts have become nothing more than rubberstamps who approve all of the EPA's regulations. The EPA routinely stacks this board with friendly scientists who receive millions of dollars in grants from the federal government. The conflict of interest here is clear."
So sayeth the man who's taken over six-hundred large in oil and gas money since he's been in Congress. Anyway, Smith hastened to move on to the latest wingnut cause celebre: another attack on NOAA and the science of climate change. An anonymous "whistleblower" told that noted scientific journal, The Daily Mail, that NOAA fudged that report debunking the notion of a climate change "pause" that so exercised Smith in the last Congress. (I told you we'd get back to this.) All of what Smith called "recent news stories" flow from this report in the Daily Mail. Ars Technica has a good rundown on the "controversy," which seems to consist of little more than nasty office feuds that set Smith off on another anti-science rampage.


I've been having mixed feelings about Mr. Oliver recently (bothsidesing UFOs didn't help), but this segment on Project 2025 is a good overview..

 

 I can't say we saw all this coming back in 2012, but the general direction was already obvious. 


Sunday, November 4, 2012

Strauss and the war on data

The most important aspect of Randianism as currently practiced is the lies its adherents tell themselves. "When you're successful, it's because other people are inferior to you." "When you fail, it's because inferior people persecute you (call it going Roark)." "One of these days you're going to run away and everyone who's been mean to you will be sorry."

The most important aspect of Straussianism as currently practiced is the lies its adherents tell others. Having started from the assumption that traditional democracy can't work because most people aren't smart enough to handle the role of voter, the Straussians conclude that superior minds must, for the good of society, lie to and manipulate the masses.

Joseph and I have an ongoing argument about which school is worse, a question greatly complicated by the compatibility of the two systems and the overlap of believers and their tactics and objectives. Joseph generally argues that Rand is worse (without, of course, defending Strauss) while I generally take the opposite position.

This week brought news that I think bolsters my case (though I suspect Joseph could easily turn it around to support his): one of the logical consequences of assuming typical voters can't evaluate information on their own is that data sources that are recognized as reliable are a threat to society. They can't be spun and they encourage people to make their own decisions.

To coin a phrase, if the masses can't handle the truth and need instead to be fed a version crafted by the elite to keep the people happy and doing what's best for them, the public's access to accurate, objective information has to be tightly controlled. With that in mind, consider the following from Jared Bernstein:
[D]ue to pressure from Republicans, the Congressional Research Service is withdrawing a report that showed the lack of correlation between high end tax cuts and economic growth.

The study, by economist Tom Hungerford, is of high quality, and is one I’ve cited here at OTE. Its findings are fairly common in the economics literature and the concerns raised by that noted econometrician Mitch McConnell are trumped up and bogus. He and his colleagues don’t like the findings because they strike at the supply-side arguments that they hold so dear.
And with Sandy still on everyone's mind, here's something from Menzie Chinn:
NOAA's programs are in function 300, Natural Resources and Environment, along with the U.S. Geological Survey (USGS) and a range of conservation and natural resources programs. In the near term, function 300 would be 14.6 percent lower in 2014 in the Ryan budget according to the Washington Post. It quotes David Kendall of The Third Way as warning about the potential impact on weather forecasting: "'Our weather forecasts would be only half as accurate for four to eight years until another polar satellite is launched,' estimates Kendall. 'For many people planning a weekend outdoors, they may have to wait until Thursday for a forecast as accurate as one they now get on Monday. … Perhaps most affected would be hurricane response. Governors and mayors would have to order evacuations for areas twice as large or wait twice as long for an accurate forecast.'"
There are also attempts from prominent conservatives to delegitimize objective data:
Apparently, Jack Welch, former chairman and CEO of General Electric, is accusing the Bureau of Labor Statistics of manipulating the jobs report to help President Obama. Others seem to be adding their voices to this slanderous lie. It is simply outrageous to make such a claim and echoes the worrying general distrust of facts that seems to have swept segments of our nation. The BLS employment report draws on two surveys, one (the establishment survey) of 141,000 businesses and government agencies and the other (the household survey) of 60,000 households. The household survey is done by the Census Bureau on behalf of BLS. It’s important to note that large single-month divergences between the employment numbers in these two surveys (like the divergence in September) are just not that rare. EPI’s Elise Gould has a great paper on the differences between these two surveys.

BLS is a highly professional agency with dozens of people involved in the tabulation and analysis of these data. The idea that the data are manipulated is just completely implausible. Moreover, the data trends reported are clearly in line with previous monthly reports and other economic indicators (such as GDP). The key result was the 114,000 increase in payroll employment from the establishment survey, which was right in line with what forecasters were expecting. This was a positive growth in jobs but roughly the amount to absorb a growing labor force and maintain a stable, not falling, unemployment rate. If someone wanted to help the president, they should have doubled the job growth the report showed. The household survey was much more positive, showing unemployment falling from 8.1 percent to 7.8 percent. These numbers are more volatile month to month and it wouldn’t be surprising to see unemployment rise a bit next month. Nevertheless, there’s nothing implausible about the reported data. The household survey has shown greater job growth in the recovery than the establishment survey throughout the recovery. The labor force participation rate (the share of adults who are working or unemployed) increased to 63.6 percent, which is an improvement from the prior month but still below the 63.7 percent reported for July. All in all, there was nothing particularly strange about this month’s jobs reports—and certainly nothing to spur accusations of outright fraud.
We can also put many of the attacks against Nate Silver in this category.

Going back a few months, we had this from Businessweek:
The House Committee on Appropriations recently proposed cutting the Census budget to $878 million, $10 million below its current budget and $91 million less than the bureau’s request for the next fiscal year. Included in the committee number is a $20 million cut in funding for this year’s Economic Census, considered the foundation of U.S. economic statistics.
And Bruce Bartlett had a whole set of examples involving Newt Gingrich:
On Nov. 21, Newt Gingrich, who is leading the race for the Republican presidential nomination in some polls, attacked the Congressional Budget Office. In a speech in New Hampshire, Mr. Gingrich said the C.B.O. "is a reactionary socialist institution which does not believe in economic growth, does not believe in innovation and does not believe in data that it has not internally generated."

Mr. Gingrich's charge is complete nonsense. The former C.B.O. director Douglas Holtz-Eakin, now a Republican policy adviser, labeled the description "ludicrous." Most policy analysts from both sides of the aisle would say the C.B.O. is one of the very few analytical institutions left in government that one can trust implicitly.

It's precisely its deep reservoir of respect that makes Mr. Gingrich hate the C.B.O., because it has long stood in the way of allowing Republicans to make up numbers to justify whatever they feel like doing.

...

Mr. Gingrich has long had special ire for the C.B.O. because it has consistently thrown cold water on his pet health schemes, from which he enriched himself after being forced out as speaker of the House in 1998. In 2005, he wrote an op-ed article in The Washington Times berating the C.B.O., then under the direction of Mr. Holtz-Eakin, saying it had improperly scored some Gingrich-backed proposals. At a debate on Nov. 5, Mr. Gingrich said, "If you are serious about real health reform, you must abolish the Congressional Budget Office because it lies."
...                                                                                                                                                                                                                                                                                                                                                            

Because Mr. Gingrich does know more than most politicians, the main obstacles to his grandiose schemes have always been Congress's professional staff members, many among the leading authorities anywhere in their areas of expertise.                                                                                                                                                                                                

To remove this obstacle, Mr. Gingrich did everything in his power to dismantle Congressional institutions that employed people with the knowledge, training and experience to know a harebrained idea when they saw it. When he became speaker in 1995, Mr. Gingrich moved quickly to slash the budgets and staff of the House committees, which employed thousands of professionals with long and deep institutional memories.

Of course, when party control in Congress changes, many of those employed by the previous majority party expect to lose their jobs. But the Democratic committee staff members that Mr. Gingrich fired in 1995 weren't replaced by Republicans. In essence, the positions were simply abolished, permanently crippling the committee system and depriving members of Congress of competent and informed advice on issues that they are responsible for overseeing.

Mr. Gingrich sold his committee-neutering as a money-saving measure. How could Congress cut the budgets of federal agencies if it wasn't willing to cut its own budget, he asked. In the heady days of the first Republican House since 1954, Mr. Gingrich pretty much got whatever he asked for.

In addition to decimating committee budgets, he also abolished two really useful Congressional agencies, the Office of Technology Assessment and the Advisory Commission on Intergovernmental Relations. The former brought high-level scientific expertise to bear on legislative issues and the latter gave state and local governments an important voice in Congressional deliberations.

The amount of money involved was trivial even in terms of Congress's budget. Mr. Gingrich's real purpose was to centralize power in the speaker's office, which was staffed with young right-wing zealots who followed his orders without question. Lacking the staff resources to challenge Mr. Gingrich, the committees could offer no resistance and his agenda was simply rubber-stamped.

Unfortunately, Gingrichism lives on. Republican Congressional leaders continually criticize every Congressional agency that stands in their way. In addition to the C.B.O., one often hears attacks on the Congressional Research Service, the Joint Committee on Taxation and the Government Accountability Office.

Lately, the G.A.O. has been the prime target. Appropriators are cutting its budget by $42 million, forcing furloughs and cutbacks in investigations that identify billions of dollars in savings yearly. So misguided is this effort that Senator Tom Coburn, Republican of Oklahoma and one of the most conservative members of Congress, came to the agency's defense.

In a report issued by his office on Nov. 16, Senator Coburn pointed out that the G.A.O.'s budget has been cut by 13 percent in real terms since 1992 and its work force reduced by 40 percent -- more than 2,000 people. By contrast, Congress's budget has risen at twice the rate of inflation and nearly doubled to $2.3 billion from $1.2 billion over the last decade.

Mr. Coburn's report is replete with examples of budget savings recommended by G.A.O. He estimated that cutting its budget would add $3.3 billion a year to government waste, fraud, abuse and inefficiency that will go unidentified.

For good measure, Mr. Coburn included a chapter in his report on how Congressional committees have fallen down in their responsibility to exercise oversight. The number of hearings has fallen sharply in both the House and Senate. Since the beginning of the Gingrich era, they have fallen almost in half, with the biggest decline coming in the 104th Congress (1995-96), his first as speaker.

In short, Mr. Gingrich's unprovoked attack on the C.B.O. is part of a pattern. He disdains the expertise of anyone other than himself and is willing to undercut any institution that stands in his way. Unfortunately, we are still living with the consequences of his foolish actions as speaker.

We could really use the Office of Technology Assessment at a time when Congress desperately needs scientific expertise on a variety of issues in involving health, energy, climate change, homeland security and many others. And given the enormous stress suffered by state and local governments as they are forced by Washington to do more with less, an organization like the Advisory Commission on Intergovernmental Relations would be invaluable.