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This is interesting. The PGA offers a non-traditional pension plan for their players that depends on how they perform throughout their careers. Tiger Woods, who performs quite well, could be eligible for almost $1 billion for his retirement if he keeps playing and winning. Billion. Wow.
From a paper on adaption to wealth and status: people on the right of the political spectrum adapt to higher status but not greater wealth and those on the left adapt to wealth but not status. (via marginal revolution)
Update: I had the two things mixed up earlier…it’s correct now. (thx to everyone who wrote in)
Tiger Woods tops this year’s list of top-earning American athletes. He makes $111M a year, more than twice as much as the fellow in second place. A list of the top-earning non-American athletes is available as well. (via cyn-c)
Out to dinner with friends: split the check evenly or not? “I find if you don’t split it evenly, and everyone pays ‘what they owe’ many people will pay much less than they owe, forgetting tax and tip. Then they avert their eyes while the generous ones pony up the extra bucks.”
James Simons, hedge fund manager, earned $1.7 billion last year. $1.7 fucking billion! His company charges fees of 5% of assets and 44% of profits while the fund grossed 84% this year. Can one person add $1.7 billion of value to the economy? Something is wrong here.
An anticorruption group in India is printing zero-rupee notes designed to be handed to officials demanding bribes. The note is “a symbol to express refusal to grease the palms of officials”. (via tmn)
LeBron James’ new house: 35,440 sq ft, 2200 sq ft master suite (with 2-story walk-in closet), theater, casino, barber shop, bowling alley, and a limestone bust of LeBron wearing a headband.
Ben Stein on “what’s new and hot and exciting” in the world on money: “The most sought after jobs in the United States now are jobs in finance in which basically almost no money is raised for new steel mills or coal mines, but immense sums are raised to buy companies, recapitalize them — which means pay the new owners immense special dividends and other payments for going to the trouble of taking over the company. This process results in fantastically well-paid investment bankers and private equity ‘financial engineers’ and has no measurably beneficial effect on the economy generally. It does facilitate the making of ever younger millionaires and an ever more leveraged American corporate structure.”
Brad Duke won $85 million in the Powerball lottery in 2005. Here’s how he’s spent the money so far. (via cyn-c)
An interview with Ootje Oxenaar, who designed a whole range of Dutch banknotes in the 60s, 70s, and 80s. “On the 1000 guilder note, it became a ‘sport’ for me to put things in the notes that nobody wanted there! I was very proud to have my fingerprint in this note - and it’s my middle finger!”
David Pennock on the steep rise of Apple’s stock after announcing the iPhone: “Jobs’s speech could not possibly have revealed over $8 billion in previously undisclosed information”.
Update: On the other hand, analysts think that Steve Jobs’ mere presence at the company is worth $20 billion.
A couple worth $2 billion did their own divorce in an afternoon over a bottle of wine. “Life’s too short, they figured. And why give the lawyers all the money if you can work it out yourselves?”
A record-breaking year for Goldman Sachs; they’re setting aside $16.5 billion for salaries, benefits, and bonuses. That’s $622,000 (!!!!!!) for each employee. Instead of the typical business puff piece telling us about what these i-bankers are going to do with their money (cars, houses, expensive dinners!), how about investigating where all this money is coming from and what, exactly, Goldman does that’s so beneficial to the economy to earn such incredible profits.
Muhammad Yunus, who came up with the idea of microcredit, received his Nobel Peace Prize yesterday. His Nobel lecture is available in text and video formats.
Ben Stein muses about taxes, but the Warren Buffett stuff at the beginning of the article is the most interesting bit. “In conversation it came up that Mr. Buffett doesn’t use any tax planning at all. He just pays as the Internal Revenue Code requires.”
$2 bills are growing in popularity in the US…$1 bills just don’t cut it for bartender’s tips and lapdance gratuities anymore. Peter Morici, professor of business at some long-named school, says that the $1 coin is taking off as well, but when my wife tried to pay at a store using one of them the other day, the cashier looked at her like she was trying to use Monopoly money.
Hot on the heels of Muhammad Yunus receiving the Nobel Peace Prize for 2006, the New Yorker has an overview of the various approaches to microfinance and microcredit.
“Fisher Island millionaire Bruce McMahan loved his daughter so much, he married her.” See also genetic sexual attraction.
You know those spams you get touting penny stocks? It turns out they actually work. “The team found that a spammer who bought shares the day before starting an e-mail campaign and then sold them the day after could make a return on his or her investment of 4.9%. If he or she were to be a particularly effective spammer, returns to this strategy would be roughly 6%.”
Update: NPR report on the spam stocks study. (thx, jeff)
A new version of Monopoly will do away with the cash and replace it with Visa debit cards. (thx, janelle)
During the depths of the dot com bust, Julian Dibbell looked online for a job and found one as a commodities trader in the Ultima Online virtual world. During one particularly productive month, he made almost US$4000. Dibbell has a book coming out about the experience, Play Money: Or, How I Quit My Day Job and Made Millions Trading Virtual Loot. In addition to being available at bookstores in meatspace, Play Money will also be on sale in the virtual world of Second Life in the currency of that world (Linden dollars). From the press release:
In-game versions of Play Money designed by Second Life coder/publisher Falk Bergman are available for L$750. These copies can be signed by Dibbell at his in-Second Life interview with journalist Wagner James Au on July 27th. For the Second Life resident who needs something a bit more tactile, L$6250 buys a real-life copy of Play Money, shipped with care to the buyer’s real life address, in addition to the standard in-game version.
(At the time of this press release, Linden dollars are trading at approximately L$300.00 to the US$1.00. Adjusted to US dollars, an online copy costs US$2.50, and the price of a real-life copy bought in-game is around US$20.85.)
Dibbell will be signing his virtual books in Second Life on July 27th. Caterina read Play Money and has some thoughts on its relation to her work/play at Ludicorp. And here’s a preview of Chinese Gold Farmers, a documentary on gold farming sweatshops in China.
A quick study shows that stocks of simply named companies do better than those of more complexly named companies. Even companies with pronounceable ticker symbols did better than those with unpronounceable symbols.
Lottery idea: instead of earmarking revenues for education, why not use the money for individual retirement accounts? The piece includes this startling fact: “Some 20 million Americans spend at least $1,000 a year on lottery tickets”. !!!!
Absurd luxury markets…“some khaki pants are now selling for AS MUCH AS $1055” (emphasis mine). Holy shit.
Friends and finances in 21st century America: “More friends and acquaintances are now finding themselves at different points on the financial spectrum, scholars and sociologists say, thanks to broad social changes like meritocracy-based higher education, diversity in the workplace and a disparity of incomes among professions.”
Guidelines from the Secret Service on the printed reproduction of currency. I once photocopied a dollar bill at the office on our uber-photocopier and was astounded how good it looked…I don’t envy the SS’s task here.
Do rich artists make bad art? “When you become as rich as [Warhol or Dali], being as rich as this becomes your story. If you don’t make art about being a multimillionaire, you are being dishonest. If you do, you can hardly claim the universality of great art.” (via rw)
People are changing how they spend their money, opting for buying experiences rather than things. “Just as we moved from a goods to a service economy, now we are shifting from a service to an experience economy.” (thx, malatron)
Larry Ellison spends tens of millions of dollars in borrowed money every year, which is worrying his accountant, who wants him to diversify by selling some of his Oracle stock.
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