Tuesday, November 26, 2013

Global wealth: bringing home the Bacon - Financial Times

Global wealth: bringing home the Bacon

http://www.ft.com/intl/cms/s/3/a6217016-4c5d-11e3-923d-00144feabdc0.html?siteedition=intl#axzz2kzwTQnwX

November 15, 2013
Sales of diamonds and paintings show wealth surging to new highs
What’s your fancy? A triptych of a contorted but famous painter or a fistful of rocks? Money sloshed round the salerooms this week like the boom times had never ended.
In New York, $142m was paid for three studies of Lucien Freud by his one-time friend Francis Bacon. This was a new auction record for an artwork, set in an event that raised $700m overall, the highest ever for a single sale. In Geneva, meanwhile, an orange diamond went under the hammer for $35.5m or a record $2.4m per carat – only to be overshadowed, a day later, by $83m for a 59.60-carat pink sparkler. Given the pictures of Philippines devastation flashing around the world, such heady luxury spending seemed surreal, to say the least.
But the sale results do underscore the extent to which global wealth has not only recovered its pre-crisis levels, but surged to new highs in spite of the economic uncertainties. Total personal wealth worldwide now stands at $241tn, according to last month’s Credit Suisse Global Wealth Report. That is up 5 per cent in the 12 months to June, and by 68 per cent since 2003. (The pre-crisis peak was passed in 2010.) On a per-adult basis, the latest total works out at $50,000, or, for Switzerland alone, above $500,000. And banish any idea that these advances are due solely to China’s rise. Over the past year, the US has clocked up the biggest wealth gains. Germany, France and Italy were also among the top five nations.
Of course, almost half this total wealth is held by the richest 1 per cent of adults. Moreover, the trend for affluence to expand faster at the top of the wealth pyramid – which has been evident since 2000 – shows no sign of abating. The number of dollar millionaires grew 6 per cent last year, while the cadre of ultra wealthy individuals (assets over $50m) rose 10 per cent to about 100,000. What is changing, though, is the make-up of that very top elite. The portion from Bric nations was just 5 per cent in 2000; now it is over a fifth.
All of which supports anecdotal evidence that the bounceback in art prices since 2009 is partly due to a coterie of new, wealthy Asian and Russian buyers. And if wealth forecasts are correct, there could be more gains to come: the Credit Suisse report estimates the number of millionaires should increase 50 per cent by 2018, to 48m. Who knows? Expensive artworks and gems could yet be good investments. Although Sam Goldwyn may have been closer to the mark: “I paid too much for it, but it’s worth it,” he once quipped.

Monday, November 25, 2013

Google’s ‘security princess’ on protecting users from cyber crime - Financial Times

Google’s ‘security princess’ on protecting users from cyber crime- Financial Times

http://www.ft.com/intl/cms/s/2/6b8c37ba-4d1b-11e3-9f40-00144feabdc0.html#axzz2lcIXfHD7

November 22, 2013 6:15 pm

Google’s ‘security princess’ on protecting users from cyber crime

By Hannah Kuchler
Parisa Tabriz says she has to forget how a normal user views a product, and consider it from a hacker’s perspective
©Justin Kaneps
Parisa Tabriz in the loft room of her shared house in Silicon Valley
Parisa Tabriz may work on the frontline of web security, tasked with keeping Google Chrome users around the world safe from an army of cyber criminals, but she still lives the life of a young adult. Leading the way to her light-filled loft room at her home in Mountain View, California, she recalls how a friend made fun of her when she turned 30. “He said to me ‘Time to be an adult – you don’t even have a door to your room’.”
In Silicon Valley, where just-out-of-college chief executives are canonised, and hundreds of 20- and 30-somethings lead exciting but unflashy lives, Tabriz is no exception. Her home – a 20-minute cycle from Google’s headquarters – is a new-build, two-bedroom rental which she shares with a housemate, and most of the furniture was chosen by the owner in the uninspired style of landlords the world over.
Tabriz has focused her room around a large office space, having pushed her bed against a wall. Darting between two desks on a leather swivel chair, she can work from any one of her three laptops. “Almost all of my work I can do from a laptop and I do photography and some digital art. So much of my life is on this portable device, which makes it really easy to be transient,” she says.
It is this transfer of everyday life to the online world, from personal conversations to banking, that has made the work Tabriz does to maintain security on Google’s browser all the more essential. The growth of mobile devices and the invention of the so-called “Internet of Things”, where anything from thermostats to baby monitors can be connected to the web, make the opportunities for cyber crime even greater. No wonder Tabriz was named earlier this year as one of the technology industry’s “30 under 30 to watch” by Fortune magazine.
“When I started the threat was not as large and the damage was probably not as significant in the common case,” she says. “But right now, so much of people’s personal lives is put online and it is not always done with the understanding of the full consequences of what the worst case scenario is.”
©Justin Kaneps
Tabriz’s bedroom and office area
In the seven years since Tabriz left college and started work in cyber security, she has seen that threat grow dramatically. After completing a computer science degree and masters at the University of Illinois and an internship at Google, she landed a job at the internet company as a security engineer. During her career, cyber criminals have gone from widespread phishing (spam emails offering plastic surgery, for instance) aimed mostly at committing credit card fraud, to more dangerous targeted attacks designed to steal anything from personal data to intellectual property and sell it on a thriving black market.
Hackers can also now trade vulnerabilities called “zero days” which help people break into networks and sell information to the highest bidder, whether they are a western company, the Russian mafia or the Chinese government. Tabriz likens the threat to offline crime, saying as long as people are motivated by the need for money, whether it is to survive or just greed, cybercrime will continue.
But she says it can feel even more intrusive to have your online accounts attacked. “Things you can easily replace, but when you feel that people have got into your most private thoughts and messages, you can feel just as violated as if someone broke into your house.”
©Justin Kaneps
Dining table
Tabriz says she feels sad and “questions humanity” when she hears about attacks, such as when her father, a doctor, had his email compromised three times. “He’s a smart man but clueless about technology,” she says. “Security should be easy.”
Like most of Silicon Valley, she is devoted to the internet and sees her job as making sure people can enjoy its “awesomeness” without feeling like they have wandered up a dark alley. Tabriz had the skills to join the “black hats”, as the criminal hackers are called, but the girl from the Chicago suburbs whose first hack was turning her operating system pink has never been tempted. “I’m much too boring and law-abiding for that,” she says. In a family full of doctors, Tabriz wasn’t a computer geek before college. Apart from being a maths and science whizz, she also credits playing football and tennis for giving her the competitive drive to beat the bad guys.
Instead of the “dark side”, she chose to join Google as one of a select group of “hired hackers” who attack Google products to find vulnerabilities which other engineers then fix. A security engineer needs to forget about how a normal user views a product, and considers it from a hacker’s perspective.
“Whereas software engineers create or ‘build’ software to solve a problem, security engineers analyse software to try and ‘break’ it – that is, we try to thoroughly understand how the code works and then avoid assumptions about how a typical person may use the software,” she says. “We assume an attacker’s mindset to look for software bugs that can be exploited to achieve some unintended behaviour.”
©Justin Kaneps
Tabriz’s photos from her trips abroad
Tabriz is now Google’s so-called “security princess”, whose sunny outlook and many hobbies, from rock climbing to travelling, sharply contrast with the hacker stereotype. This alone has won her the type of media attention the industry does not normally receive. She has been featured in the technology press and several women’s magazines, which she says is like being a “reality TV star”.
On a black coffee table in the centre of her bedroom is a plastic silver tiara with which she was crowned when she was became manager of Google’s information security engineering team. “There’s a really collegiate, joking culture,” she says, insisting that she does not wear it.
©Justin Kaneps
Collection of travel and cookery books
Despite the concentration of young tech workers, downtown Mountain View is little more than a two-block stretch of pavement cafés, and is almost an extension of the Google campus. In recent years, many Silicon Valley workers have moved to nearby San Francisco, preferring to live in the city despite the hour-long commute to work. Tabriz chose to stay in Mountain View so she could enjoy an easier journey to her office. However, she regularly flies to conferences around the world in an effort to convince skilled hackers to join Google rather than the “black hats”.
She is committed to winning what she calls the game of “cat and mouse”, even helping to introduce “bug bounties” at Google that reward outsiders for telling the company about potential new hacks. Google has so far paid out about $2m for more than 2,000 security bugs, which it then fixed, and this summer it increased the rewards fivefold. Other major companies such as Facebook, Microsoft and HP now do the same.
Tabriz admits she eats most of her meals at Google (where the food is free). At home, the dining table is laid with handcrafted crockery from her travels: wooden bowls from Bali and a delicate olive oil decanter from Italy. She says she always tries to take a cooking class wherever she goes; her fridge, however, is bare.
©Justin Kaneps
Wooden bowls from Bali
“This is a typical Googler’s refrigerator – just condiments,” she says, referring to the name Google employees call each other. Inside is a pot of chilli sauce the size of an urn but no food to put it on.
However, there are signs of imminent change with boxes filling the living room. Tabriz and her housemate are preparing to move out and she plans to move in with her boyfriend; it’s time to be an adult.
One day soon she hopes she will have a home she believes is worthy of the House & Home pages. After all, at 30 she is approaching “senior Googler status”. But on this front, Tabriz’s ambitions still seem modest. “Maybe when we buy and settle down, we will get some plants – and then we’ll start with a pet fish.”
-------------------------------------------
©Justin Kaneps
Favourite thing
For a laptop-addicted Googler, a classic but clunky typewriter is perhaps an unlikely favourite object. But for Tabriz, it marks the moment when she took on the daunting task of leaving a pool of security engineers to become their manager. “When I came back from holiday, my team had removed all the computers from my desk and left this there,” she says, pointing at the machine on a table in the middle of her bedroom. Tabriz’s new subordinates had placed a piece of paper titled “TPS report” (standing for “totally pointless stuff”) in the typewriter, which she has left in place. The joke references Office Space, a 1999 film about “a stereotypically pointy headed manager who is always asking for TPS,” Tabriz explains. As well as the memory of an “interesting transition” to manager of her friends, peers and people older than her, she has a hacker’s appreciation for a “beautiful machine”. Still, used to living her life online, she has never even sat down to write a letter on the typewriter, let alone a report. “I’m not even sure if it works,” she says.

Sunday, November 24, 2013

Gettysburg: How Lincoln's speech lived on - BBC NEWS

How Lincoln's speech lived on - BBC NEWS

http://www.bbc.co.uk/news/magazine-25038046

Gettysburg: How Lincoln's speech lived on

John F Kennedy and Abraham Lincoln
This week saw two landmark anniversaries in American history - 150 years since Abraham Lincoln's Gettysburg Address, and 50 years since the assassination of President John F Kennedy.
"Four score and seven years ago our fathers brought forth on this continent a new nation, conceived in liberty, and dedicated to the proposition that all men are created equal."
It is said that it took Lincoln two-and-a-half minutes to deliver the Gettysburg Address, and that it set the tone for a century.
In the three days of fighting at Gettysburg, 51,000 men were killed or injured.
For Lincoln, the war was a test - a test of whether America's great experiment with democracy could survive.
It was still the 1860s - the idea that the people could govern themselves was revolutionary. On that damp, autumnal Pennsylvania field he re-dedicated the American Republic to the ideals on which it was founded.
For a century after the war, though, the post-slavery south enforced strict racial segregation. Black America was locked out of the Gettysburg promise.

From Our Own Correspondent

People read newspaper after Kennedy's death
  • Insight and analysis from BBC correspondents, journalists and writers from around the world
  • Broadcast on Radio 4 and BBC World Service
This is the century that separates Lincoln from John Kennedy and which binds their fates together in American history - two iconic figures who came to be associated in the American mind with the tragedy of unfulfilled promise.
For the south, the war was not about slavery. It was about states' rights - the right of the individual states to live their own way of life, free from intrusion by the distant federal government in Washington.
It is the fusion of two things that unite Lincoln and Kennedy - the age-old American argument about the proper nature and scale of federal government, and the explosive politics of race.
The Civil War faultline reaches forward into the Kennedy era. In the 1960s, American liberals had come to view southern racial politics as an abomination.
It was apartheid to the New World - an enduring legacy of slavery in the land of the free. John Kennedy began to press for change. The white South revolted.
The South had always solidly voted Democratic. Now, it threatened to defect to the Republicans - the party, ironically, of Abraham Lincoln.
Kennedy was facing re-election a year later and had to win the state of Texas. That is why he went to Dallas.
It is said that as they drove into town from the airport, he told his wife Jackie they were now heading into "nut country". Minutes later he was dead.
Lyndon B Johnson is sworn in as president hours after JFK's deathLyndon Johnson was sworn in as president hours after JFK's death
His successor, Lyndon Johnson, used the momentum created by his martyrdom to force through Congress a series of almost revolutionary acts that ended legal segregation and extended voting rights to millions of southern black people for the first time.
In a sense it was the fulfilment of Lincoln's Gettysburg promise.
Is that faultline still active? I went to a Republican Party hustings in Dallas. Every speaker condemned the pernicious expansion of federal power under President Obama as a betrayal of the founding principles of the American Republic.
The meeting began to discuss the merits and demerits of a government ban on texting while driving. Was it consistent with the founding principles? Was it not it a clear and very un-American assault on the liberty of the individual?
"Sure," one man said, "I will support a ban on texting while driving just as long as we also ban brushing your teeth while driving, shaving while driving, reaching in to the back seat to slap your kids while driving."
There followed a bizarre interlude in which speakers sought guidance from the 18th Century framers of the Republic.
What, I found myself wondering, would James Madison and Thomas Jefferson have made of the matter of banning texting while driving?
After the meeting one man, a Tea Party activist, told me that President Obama's attempts at wealth redistribution were only semantically different, as he put it, "to me holding a revolver to your head and telling you to give me your wallet".
Barack Obama
It is a graphic image. It means something very specific to a certain kind of listener - Obama cast in the image of a street robber, a mugger.
It is not overtly racist. But it has, for those who want to hear it, a clear racial undercurrent.
The Republicans despised Bill Clinton. But they never challenged his American-ness. Many black Americans believe there is something extra in the Republicans' hatred of Obama.
You are struck, again and again, by the anger that is coursing through much of the Republican Party. It is understandable. Until 2008, they had been in power for the best part of 40 years.
From Richard Nixon in 1968, until George W Bush in 2008 - 40 years in which only two Democrats had made it to the White House, and both were Southern white men. Jimmy Carter and Bill Clinton had the mud of the Conservative south reassuringly on their boots.
It seemed, for decades, that conservative America was ascendant, and that liberal America had retreated into a self-destructive, angry counter-culture. Now it is the Republicans - so long the party of government - who are in danger of sliding into that counter-culture status.

Saturday, November 23, 2013

China, the World’s Most Populous Nation, Needs More Children - TIME

China, the World’s Most Populous Nation, Needs More Children

http://world.time.com/2013/11/21/china-the-worlds-most-populous-nation-needs-more-children/
TIME International's cover story this week delves into the looming crisis facing China as its population grows old before it grows rich
TIME Magazine International Cover, December 2, 2013Illustration by Yuta Onoda for TIME
 Follow @TIMEWorld
The Third Plenum leadership conclave that ended last week in Beijing brought — in addition to reams of turgid paeans to the Chinese Communist Party — hopes that President Xi Jinping and his team are committed to a national economic refurbishment. But among ordinary Chinese, the meeting’s most welcome outcome may be news that the notorious one-child policy is finally being loosened.
The new family-planning reform will allow couples in which one partner is an only child to have two kids themselves. (Already, farmers, ethnic minorities and couples composed of two only children are subject to more relaxed rules.) Each year, 1 million parents may take the government up on its offer to expand their families, according to demographers’ projections.
But as TIME notes in its international cover story this week, such “fine-tuning,” as state media characterized last week’s policy update, will not be enough to counteract the fact that “the world’s most populous nation, 1.35 billion strong, will soon have too few people — or, rather, too few of the right kind of people.”
Last week’s reform does show that China’s leaders, after years of delay, are beginning to face up to the unintended consequences of the one-child policy. Unveiled in 1979 to galvanize a poor, populous society, the family-planning scheme is credited with having helped spawn China’s economic transformation, despite the human-rights abuses committed in its name. But as any society grows richer and more educated, family sizes tend to taper off. As TIME’s story notes, more than three decades of government-mandated family planning have exacerbated this natural trend and left China with:
a distorted population: too few youths, too few women and too many elderly. Writing in the Population and Development Review, a peer-reviewed journal published by the Population Council in New York City, three top Chinese demographers predict that “the one-child policy will be added to the other deadly errors in recent Chinese history,” alongside the turbulent 1966–76 Cultural Revolution and a devastating man-made famine from 1959–61. “While those grave mistakes both cost tens of millions of lives, the harms done were relatively short-lived and were corrected quickly afterward. The one-child policy, in contrast, will surpass them in impact.”
In implementing the largest social-engineering experiment in human history, the People’s Republic has merely traded one population time bomb for another. China now faces a multitude of social woes usually seen in more-developed economies better equipped to handle these challenges. It is growing old before it grows rich — meaning an explosion of elderly Chinese even as the government has presided over a fraying of the nation’s socialist safety net.
Last year the working-age population shrank for the first time, according to China’s National Bureau of Statistics, a huge concern for a government that depends on plentiful labor to deliver economic growth, which is in turn needed to quell social instability. By limiting urban families to one child while allowing some rural ones to bear two, China has skewed its population against the type of citizen it needs in order to climb into the ranks of developed countries. Then there are the some 25 million extra males, a result of tradition-bound parents ensuring that their offspring quota is filled by a son. “I don’t think the one-child policy was worth it,” says Mu Guangzong, a population expert at Peking University. “The people who made the policy never imagined all the problems we’re facing right now. Their knowledge of demography was shallow. Now society has to pay heavily for their ignorance.”
No date has been announced for implementation of this month’s policy tweak. In fact, such deadlines will be set locally. The timetable for further family-planning reforms isn’t clear either, leading to worries that change will come too late to combat China’s social and economic woes.
Meanwhile, campaigns to catch high-profile evaders of the family-planning policy continue, even as some Chinese ignore the rules and choose to pay exorbitant government fines instead. (Other rich Chinese are giving birth overseas and registering the child for a foreign passport, which may be cheaper than paying the family-planning levies back home.)
On Nov. 19, Xinhua, the official Chinese news service, published an article about film director Zhang Yimou, who has been accused of fathering at least seven children with various women. Authorities in Wuxi, the coastal city that is the hometown of Zhang’s wife, have been trying to contact the famous director for months to get an accurate appraisal of his family size, according to Xinhua.
But even though Zhang appears to be in China shooting a movie, local authorities in Wuxi complained to Xinhua that they have not been able to reach him. Separately, the People’s Daily, the Chinese Communist Party’s mouthpiece, estimated that Zhang could be liable for more than $26 million in fines for his multiple offspring. Even for a family-planning bureaucracy that has made at least $330 billion from so-called social-support fees since the one-child policy began, according to one Chinese demographer’s estimate, that would be an impressive individual haul.

Friday, November 22, 2013

6 Tips to Maximize Credit Card Rewards - TIME


6 Tips to Maximize Credit Card Rewards

Nov. 20, 20133 Comments
Close Unused Credit Card Accounts
Mark Viker / Getty Images
Rewards are the primary reason people pick one credit card over another, but many of us don’t really understand the rewards programs that are driving our choices. The Consumer Financial Protection Bureau is investigating how well banks explain those rewards.
“We will be reviewing whether rewards disclosures are being made in a clear and transparent manner,” CFPB director Richard Cordray told Bloomberg. If not, he says the CFPB might make card issuers do something about that.
In the meantime, here’s what you need to know to make sure you’re getting full credit for the rewards you earn.
Points can be whittled away by inflation. “The biggest issue with credit card rewards is the rapid devaluation of points and miles” that customers earn from co-branded travel cards, says Credit.com credit and travel expert Jason Steele. When companies charge more miles for the same trip, Steele says, “The rewards received by credit card users are worth less when they try to redeem them then they were at the time they were received.” If your miles have gotten shorter over the years, consider a rewards card that isn’t tied to a particular airline or hotel chain and offers cash back, instead.
Not all redemption values are created equal. “Generally speaking, the best way to redeem rewards on travel credit cards is for travel, the best way to redeem on cash back cards is cash and the best way to redeem on other cards is typically gift cards,” says Anisha Sekar, vice president of credit and debit products at NerdWallet.com. The rewards from a card that promises, say, 1% or 2% cash back might be worth much less, especially if you’re “spending” those points on items in an issuer’s online merchandise catalog. “Typically, redeeming for merchandise is less valuable than redeeming for cash,” Sekar says.
Sign-up bonuses can require heavy spending. Sekar points out that some issuers offer bonuses as high as a couple hundred bucks just for signing up. But earning those points or cash back value requires a commitment: The fine print generally stipulates that the cardholder spend several hundred dollars — and some thresholds are even higher — within the first few months of having the card. So if you’re counting on a reward for signing up for a card, do the math beforehand and make sure your spending supports the program’s requirements.
Watch for point caps and sign-up requirements. Some card programs promise bonus earnings on certain categories of purchases, like restaurant meals or department stores. But check the fine print before you use these promos as an excuse to spend more: Many of these programs cap the amount of accelerated rewards you can earn. Steele says some programs cut cardholders off after they’ve earned only a few hundred bucks in extra rewards. Oh, and keep tabs on those rotating accelerated rewards categories. Many only run for a month or three months at a time, and some require you to register before you can earn those extra points.
Inactivity penalties can erase points. Some issuers implement what’s essentially a use it or lose it rule, says Greg Lull, spokesman at CreditKarma.com. “Some cards will penalize you for inactivity,” he says. “Go a year or so without earning any rewards, and you could lose the points you’ve already earned.” And while a growing number of reward programs tout their no-expiration policies, some points do expire. Lull says it’s especially important to keep an eye on this if your card is taken over by another bank; sometimes the new owner will set a deadline for cardholders to use their rewards.
Rewards are expensive if you carry a balance. Even if you’re a big charger, the amount you earn in rewards will pale in comparison to what you’ll pay if you revolve a balance. The Chicago Federal Reserve conducted a study and found that people with rewards cards are more likely to spend more and carry higher debt, which cancels out the value of any rewards you earn and then some.


Read more: 6 Tips to Maximize Credit Card Rewards | TIME.com http://business.time.com/2013/11/20/6-tips-to-maximize-credit-card-rewards/#ixzz2lKcWryut