A gamer recently sold a virtual property, existing only in the context of an on-line game, for serious money.

Yahoo:

Think the rent is, in fact, too damn high? Then stay as far away from online world Entropia Universe as possible, because its real estate prices will drive you insane.

Take, for instance, what just went down on Planet Calypso, where one of Entropia’s wealthier players has sold off his interests in a “resort asteroid” for an eye-popping $635,000.

The seller is Jon Jacobs, also known as the character ‘Neverdie’. He originally purchased the asteroid in 2005 — eventually converting it into the extravagant resort ‘Club Neverdie’ — for the then-record price of $100,000. For those keeping score, that’s a gain of over $500,000 in just five years. In nerdier terms, that’s an ROI of 535%. Match that, Citibank.

Walter Russell Mead is a liberal, but he recognizes why.

All pundits, including yours truly, get it wrong sometimes, and normally there would be little point in dwelling on past blunders. But it this case, it is worth exhuming these vaporous and embarrassing stupidities for a few moments. Many of our nation’s intellectual leaders wonder why the rest of the country isn’t more respectful of their claims to be guided by and speak for the cool voice of celestial reason. That so many of them gushed over Barack Obama with all of the profundity of reflection and intellectual distance of tweeners at a Justin Bieber concert should help them understand why their claims of superior wisdom are sometimes met with caustic cynicism.

A significant chunk of the American liberal intelligentsia completely lost its head over Barack Obama. They mistook hopes and fantasies for reality. Worse, the disease spread to at least some members of the White House team. An administration elected with a mandate to stabilize the country misread the political situation and came to the belief that the country wanted the kinds of serious and deep changes that liberals have wanted for decades. It was 1933, and President Obama was the new FDR.

They did not perceive just how wrong they were; nor did they understand how the error undermined the logical case they wanted to make in favor of a bigger role for government guided by smart, well-credentialed liberal wonks. Give us more power because we understand the world better than you do, was the message. We are so smart, so well-credentialed, so careful to read all the best papers by all the certified experts that the recommendations we make and the regulations we write, however outlandish and burdensome they look to all you non-experts out there, are certain to work. Trust us because we are always right, and only fools and charlatans would be so stupid as to disagree.

They were fundamentally misreading the mood of the country, the political situation, and the ability of the new president even as they claimed that their superior and universal wisdom gave them the right and the duty to plan the future of vast swatches of the American economy. They were swept away by giddy euphoria even as they proclaimed the virtue of cool reason. Voters could see this; increasingly, they tuned the administration out.

Yoshitoshi Tsukioka, Akashi Gidayu, No 83, 100 Views of the Moon series, Woodblock Print, c. 1890.

Wow! Liberal democrat strategists Douglas E. Schoen and Patrick H. Caddell, in the Washington Post, are urging Barack Obama to do the honorable thing and announce that he intends to be a one-term president.

This is a critical moment for the country. From the faltering economy to the burdensome deficit to our foreign policy struggles, America is suffering a widespread sense of crisis and anxiety about the future. Under these circumstances, Obama has the opportunity to seize the high ground and the imagination of the nation once again, and to galvanize the public for the hard decisions that must be made. The only way he can do so, though, is by putting national interests ahead of personal or political ones.

To that end, we believe Obama should announce immediately that he will not be a candidate for reelection in 2012.

Read the whole thing.

All the folderol about how much more effective Obama would be as a lame duck is obviously patent rubbish. What they want is Obama the albatross to unfasten himself from the democrat party’s neck.

Ah, sharper than the serpent’s tooth…

Our liberal rulers are preparing warning labels for cigarette packages to save us from ourselves.

DirectorBlue argues that warning labels on voting machines and ballots would be more to the point.

Hat tip to the News Junkie.

The late Tony Judt left a written tribute to his adopted city which was recently published in the New York Times.

I arrived in New York just in time to experience the bittersweet taste of loss. In the arts the city led the world from 1945 through the 1970s. If you wanted to experience modern painting, music or dance, you came to the New York of Clement Greenberg, Leonard Bernstein and George Balanchine. Culture was more than an object of consumption: people thronged to New York to produce it too. Manhattan in those decades was the crossroads where original minds lingered — drawing others in their wake. Nothing else came close.

Jewish New York too is past its peak. Who now cares what Dissent or Commentary says to the world or each other? In 1977, Woody Allen could count on a wide audience for a joke about the two magazines merging and forming “Dissentary” (see “Annie Hall”). Today? A disproportionate amount of the energy invested in these and certain other small journals goes to the Israel question: perhaps the closest that Americans get to nombrilisme.

The intellectual gangs of New York have folded their knives and gone home to the suburbs — or else they fight it out in academic departments to the utter indifference of the rest of humanity. The same, of course, is true of the self-referential squabbles of the cultural elites of Russia or Argentina. But that is one reason neither Moscow nor Buenos Aires matters on the world stage. New York intellectuals once did, but most of them have gone the way of Viennese cafe society: they have become a parody of themselves, their institutions and controversies of predominantly local concern.

And yet, New York remains a world city. It is not the great American city — that will always be Chicago. New York sits at the edge: like Istanbul or Mumbai, it has a distinctive appeal that lies precisely in its cantankerous relationship to the metropolitan territory beyond. It looks outward, and is thus attractive to people who would not feel comfortable further inland. It has never been American in the way that Paris is French: New York has always been about something else as well.

Read the whole thing.

Hat tip to Matt MacLean.

Arnold Kling examines the feasibility of maintaining current US level of entitlement spending for seniors and arrives at highly pessimistic conclusions.

Most Americans would be happier if the outlook for the budget could be taken care of without having to make major changes to entitlement programs. Certainly, politicians would have it easier if this were the case.

Unfortunately, arithmetic and prudence imply a need to tackle entitlements. What this paper has shown is that various alternative solutions to the budget problem are largely myths. Social Security is not protected by its trust fund. The trust fund contains no real assets. It is simply an accounting device that indicates the promises that have been made to current workers to provide benefits to them in retirement. There is no way to avoid having Social Security absorb a large share of
the budget during the years when the Baby Boomers are collecting benefits.

Raising taxes on high earners (those in the top 1 percent of the income distribution) is not a reliable way to deal with the budget deficit. Increasing the effective tax rate requires much more than just raising marginal rates because individuals have the opportunity to shift income into forms that are taxed at lower rates. Structural reforms to the tax system could reduce the ability of high earners to shelter income, but only with adverse effects on capital accumulation, entrepreneurship, and risktaking. In any case, even doubling the effective tax rate on high earners would not make the budget problem disappear.

Health care spending is rising as a share of GDP. This is true all over the world, reflecting the high income elasticity of the demand for health care. As people get wealthier, they are willing to spend more to remain healthier. Certainly, greater efficiency in health care management and delivery is both desirable and possible. However, the potential for pure efficiency gains is limited, and it will not solve the problem of ever-increasing Medicare spending. The only way to address Medicare specifically and health care spending more generally is to change the way that Americans make choices about the utilization of medical services. This will require either a stronger move toward government rationing or a shift toward more consumer sharing of the costs and responsibility for decisions about which procedures to undertake and which procedures to forgo.

Broad-based tax increases, bringing rates in line with those seen in Europe, will only solve the budget problem if there is minimal response of labor supply. However, there is notable evidence that higher taxes produce significant long-run reductions in hours spent engaging in market work, with households substituting home production for taxable labor. Higher tax rates could result in a large loss in consumer well-being with little or no increase in government revenues.

Finally, it is true that we faced a higher ratio of debt to GDP at the end of the Second World War. However, our current position does not resemble that of 1945, when we could look forward to sharp declines in government spending and large primary surpluses. Instead, the outlook over the next two decades is for increased spending and ever-widening primary deficits. Certainly, if productivity growth greatly exceeds the 1.6 percent per year embedded in current projections, the prospects for the budget would be brighter. However, it is most prudent to align our promised entitlement benefits to realistic projections, not to optimistic hopes.

Today, the American people must face up to significant structural changes in entitlement programs that reduce promised benefits. We have exhausted the alternatives.

The Daily Mail reports on an outrageous demonstration of Islamic insolence in London yesterday.

Islamic protesters sparked fury today after they burned a model of a poppy and deliberately broke the silence at Armistice Day commemorations in central London.

As millions of Britons fell silent to remember those who have died in war, members of a group called Muslims Against Crusades clashed with police during an ’emergency demonstration’ in Kensington, west London.

As the clock struck 11am, the Islamic protesters burned a model of a poppy and chanted ‘British soldiers burn in hell’.

They held banners which read ‘Islam will dominate’ and ‘Our dead are in paradise, your dead are in hell’. …

The protest, in Exhibition Road, near Hyde Park, involved about 50 people while about another 50 counter-demonstrators had to be kept apart from the group by a line of police.

Three men were arrested at the scene – two for public order offences and one for assaulting a police officer. …

It is thought Muslims Against Crusades is a splinter group of Islam4UK, founded by Anjem Choudary.

Freedom of speech has never traditionally included the right of the foreign enemy to propagandize and insult a country’s war dead in its capital in time of war.

A responsible government would round up these demonstrators and deport them back to their native homelands. The privilege of residency ought to be considered to entail minimal obligations of loyalty and civility. There is an element of real insanity in the manner in which government officials transatlantically have become so hypnotized by extravagant and politically correct interpretations of liberal rights theory that even more basic moral obligations have become obscure to them.

Any government which asks its citizens to fight and die on its behalf has a primal obligation to uphold and vindicate the cause for which they fight and to honor their service and sacrifice.

Peter J. Wallison, at AEI, debunks the Baily-Eliott thesis, which attempts to deflect the responsibility for the housing market bubble from government social policies by dispersing shares of the responsibility to financial institutions for failing to manage risk, to insufficient regulatory oversight, to reckless and naive consumers, and even to the actions and inactions of “many outside the United States.”

Exculpating social engineering policies emplaced by the Clinton Administration was vital for the defense of the Progressive political agenda, and it was the Baily-Elliott interpretation of events that led to passage of the Dodd-Franks Act.

Last November, two highly respected Brookings Institution scholars, Martin Neil Baily and Douglas J. Elliott, published a paper entitled “Telling the Narrative of the Financial Crisis: Not Just a Housing Bubble.”

Baily and Elliott make a strong case for explaining the financial crisis as the result of a general decline in risk aversion because of the effect of the great moderation—the period from 1982 to 2007 when it seemed that we understood the causes of financial crises and had found a way to avoid or mitigate them. The evidence for a general weakening in risk aversion coming out of this period is plausible. But the Baily-Elliott narrative assumes that the 1997–2007 housing bubble was also caused by this factor, and that seems implausible. The extraordinary lengths to which the government went to force private-sector lending that would not otherwise have occurred—through affordable-housing requirements for Fannie and Freddie as well as demands on FHA and on the banks under CRA—shows that the housing bubble that ended in 2007 was not a natural occurrence or the result of mere risk aversion. If it had been, there would have been no need for these government programs.

The housing bubble that finally burst in 2007 was driven by a U.S. government social policy that was intended to increase homeownership in the United States and was thus not subject to the usual limits on the length and size of asset bubbles. As such, it was far larger and lasted far longer than any other bubble in modern times, and, when it deflated, the vast number of poor-quality mortgages it contained defaulted at unprecedented rates. This drove down U.S. housing values and caused the weakening of financial institutions around the world that we know as the financial crisis.

Market participants were certainly taking risks as the bubble grew, and it may well be, as Baily and Elliott posit, that this private risk taking was greater than in the past. But the facts show that the bubble was inflated by a government social policy that created a vast number of subprime and Alt-A mortgages that would not otherwise have existed. And the risks associated with this policy—which could produce losses of more than $400 billion at Fannie and Freddie alone—were being taken by only one unwitting group: the taxpayers.

Read the whole thing.

Hat tip to Scott Drum.

Rejoicing over his own business model, the New York Times manager of new media and strategic initiatives, Gerald Marzorati, inadvertently provided substantive evidence of the real acumen of a major segment of the liberal newspaper of record’s readership.

Forbes:

The New York Times cultivates an image as the preferred read of the intellectual elite, but at least one of the paper’s higher-ups seems to think its customers aren’t all that bright.

During a panel discussion at the Digital Hollywood New York conference, Gerald Marzorati, the Times’s assistant managing editor for new media and strategic initiatives, explained why the paper’s print business is still robust. “We have north of 800,000 subscribers paying north of $700 a year for home delivery,” Marzorati said. “Of course, they don’t seem to know that.”

As evidence that Times subscribers don’t realize how much a subscription costs, he pointed to what happened when the paper raised its home-delivery price by 5 percent during the recession: Only 0.01 percent of subscribers canceled. “I think a lot of it has to do with the fact that they’re literally not understanding what they’re paying,” he said. “That’s the beauty of the credit card.”

Maybe we need warning labels on the New York Times.

—this post is repeated annually—

WWI came to an end by an armistice arranged to occur at the eleventh hour of the eleventh day of the eleventh month of 1918. The date and time, selected at a point in history when mens’ memories ran much longer, represented a compliment to St. Martin, patron saint of soldiers, and thus a tribute to the fighting men of both sides. The feast day of St. Martin, the Martinmas, had been for centuries a major landmark in the European calendar, a date on which leases expired, rents came due; and represented, in Northern Europe, a seasonal turning point after which cold weather and snow might be normally expected.

It fell about the Martinmas-time, when the snow lay on the borders…
—-Old Song.

From Robert Chambers, The Book of Days, 1869:

St. Martin, the son of a Roman military tribune, was born at Sabaria, in Hungary, about 316. From his earliest infancy, he was remarkable for mildness of disposition; yet he was obliged to become a soldier, a profession most uncongenial to his natural character. After several years’ service, he retired into solitude, from whence he was withdrawn, by being elected bishop of Tours, in the year 374.

The zeal and piety he displayed in this office were most exemplary. He converted the whole of his diocese to Christianity, overthrowing the ancient pagan temples, and erecting churches in their stead. From the great success of his pious endeavours, Martin has been styled the Apostle of the Gauls; and, being the first confessor to whom the Latin Church offered public prayers, he is distinguished as the father of that church. In remembrance of his original profession, he is also frequently denominated the Soldier Saint.

The principal legend, connected with St. Martin, forms the subject of our illustration, which represents the saint, when a soldier, dividing his cloak with a poor naked beggar, whom he found perishing with cold at the gate of Amiens. This cloak, being most miraculously preserved, long formed one of the holiest and most valued relics of France; when war was declared, it was carried before the French monarchs, as a sacred banner, and never failed to assure a certain victory. The oratory in which this cloak or cape—in French, chape—was preserved, acquired, in consequence, the name of chapelle, the person intrusted with its care being termed chapelain: and thus, according to Collin de Plancy, our English words chapel and chaplain are derived.

The canons of St. Martin of Tours and St. Gratian had a lawsuit, for sixty years, about a sleeve of this cloak, each claiming it as their property. The Count Larochefoucalt, at last, put an end to the proceedings, by sacrilegiously committing the contested relic to the flames. …

The festival of St. Martin, happening at that season when the new wines of the year are drawn from the lees and tasted, when cattle are killed for winter food, and fat geese are in their prime, is held as a feast-day over most parts of Christendom. On the ancient clog almanacs, the day is marked by the figure of a goose; our bird of Michaelmas being, on the continent, sacrificed at Martinmas. In Scotland and the north of England, a fat ox is called a mart, clearly from Martinmas, the usual time when beeves are killed for winter use. In ‘Tusser’s Husbandry, we read:

When Easter comes, who knows not then,
That veal and bacon is the man?
And Martilmass beef doth bear good tack,
When country folic do dainties lack.’

Barnaby Googe’s translation of Neogeorgus, shews us how Martinmas was kept in Germany, towards the latter part of the fifteenth century

‘To belly chear, yet once again,
Doth Martin more incline,
Whom all the people worshippeth With roasted geese and wine.
Both all the day long, and the night, Now each man open makes
His vessels all, and of the must, Oft times, the last he takes,
Which holy Martin afterwards Alloweth to be wine,
Therefore they him, unto the skies, Extol with praise divine.’

A genial saint, like Martin, might naturally be expected to become popular in England; and there are no less than seven churches in London and Westminster, alone, dedicated to him. There is certainly more than a resemblance between the Vinalia of the Romans, and the Martinalia of the medieval period.

Indeed, an old ecclesiastical calendar, quoted by Brand, expressly states under 11th November: ‘The Vinalia, a feast of the ancients, removed to this day. Bacchus in the figure of Martin.’ And thus, probably, it happened, that the beggars were taken from St. Martin, and placed under the protection of St. Giles; while the former became the patron saint of publicans, tavern-keepers, and other ‘dispensers of good eating and drinking. In the hall of the Vintners’ Company of London, paintings and statues of St. Martin and Bacchus reign amicably together side by side.

On the inauguration, as lord mayor, of Sir Samuel Dashwood, an honoured vintner, in 1702, the company had a grand processional pageant, the most conspicuous figure in which was their patron saint, Martin, arrayed, cap-à-pie, in a magnificent suit of polished armour; wearing a costly scarlet cloak, and mounted on a richly plumed and caparisoned white charger: two esquires, in rich liveries, walking at each side. Twenty satyrs danced before him, beating tambours, and preceded by ten halberdiers, with rural music. Ten Roman lictors, wearing silver helmets, and carrying axes and fasces, gave an air of classical dignity to the procession, and, with the satyrs, sustained the bacchanalian idea of the affair.

A multitude of beggars, ‘howling most lamentably,’ followed the warlike saint, till the procession stopped in St. Paul’s Churchyard. Then Martin, or his representative at least, drawing his sword, cut his rich scarlet cloak in many pieces, which he distributed among the beggars. This ceremony being duly and gravely performed, the lamentable howlings ceased, and the procession resumed its course to Guildhall, where Queen Anne graciously condescended to dine with the new lord mayor.

Dennis Prager speaks for the astonished rest of America.

OK, riddle fans, here’s a toughie: What’s the difference between California voters and the passengers on the Titanic?

The passengers on the Titanic didn’t vote to hit the iceberg.

Most Americans understand that California is sinking. What is almost incredible is that it has voted to sink.

On Election Day, 2010 Californians voted Democrats into every statewide position (one is still undecided). This is the party that singlehandedly has brought one of the world’s greatest economies to near ruin. There may well be historical parallels to what Californians did — but I cannot think of any.

A listener called my radio show two days after the elections to tell me that his business is booming — thanks to Californians. His occupation? He’s a real estate agent in Phoenix, Ariz.

From Bird Dog via Karen L. Myers.