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(photo: the beach in Bagnara Calabra - pure happiness!)

At times, I think the political and cultural columnist David Brooks has a little bit of Mediterranean blood flowing through his body (regardless of his Anglo-Saxon appearance).  Time and time again Brooks puts together elegant arguments on the paradox of American living, why gun control is necessary, or, say, how most people struggle to find happiness.  While I don't agree with every opinion Brooks' holds, I did enjoy a recent New York Time Op-Ed where he argues that we, as a society, should spend more time chasing what truly makes us happy versus material wealth .  The article got me thinking about how many of Italians I know have high levels of happiness (especially the ones living in Italy) and why they so easily grasp how to lead a good life. 

It's no secret that Europeans, generally speaking, have a higher quality of life than most Americans.  The "European way of life" is known throughout the world as emphasizing family, food, and overall well being, while here in the United States the perception is that the more money one makes the better off he or she will live.   Are the Europeans just freaks of nature high on multiple cups of espresso; afterall, isn't a flashy career more important than an afternoon siesta and a pre dinner aperitif?

The above questions beg the ultimate question; namely, why wouldn't everyone want to live like an Italian (or their Europeans neighbors)?  Are we too focused on capitalist models here in the United States training our best and brightest to become investment bankers versus well rounded individuals who have a passion for leading a happy life?  

Prescribing how to lead a happy life is akin to telling someone how to dress or which religion to follow; that is to say, most folks don't want to be told that they would be happier only if they did X, rather they want to discover their own path to smiling each and every day.  

My advice is to listen to the latest psychological research on what makes people happy throughout the world and follow a little bit of Brooks' advice.  In turn, here's a quick summary of how Brooks interprets the latest empirical findings from the new field of "happiness studies" and why living the "Italian way" may be more beneficial than chasing the almighty dollar (or living like an American):   


1. "Marital happiness is far more important than anything else in determining personal well-being. If you have a successful marriage, it doesn't matter how many professional setbacks you endure, you will be reasonably happy."

2. "Poor nations become happier as they become middle-class nations, but once the basic necessities have been achieved, future income is lightly connected to well-being."

3. "The US is much richer than it was 50 years ago, but this has produced no measurable increase in overall happiness. On the other hand, it has become a much more unequal country, but this inequality doesn't seem to have reduced national happiness."

4. "Winning the lottery doesn't seem to produce lasting gains in well-being. People aren't happiest during the years when they are winning the most promotions. Instead, people are happy in their 20's, dip in middle age and then, on average, hit peak happiness just after retirement at age 65."

5. "People get slightly happier as they climb the income scale, but this depends on how they experience growth. Does wealth inflame unrealistic expectations? Does it destabilize settled relationships? Or does it flow from a virtuous cycle in which an interesting job produces hard work that in turn leads to more interesting opportunities?"

6. "The daily activities most associated with happiness are sex, socializing after work and having dinner with others. The daily activity most injurious to happiness is commuting. According to one study, joining a group that meets even just once a month produces the same happiness gain as doubling your income. According to another, being married produces a psychic gain equivalent to more than $100,000 a year."

7. "If you want to find a good place to live, just ask people if they trust their neighbors. Levels of social trust vary enormously, but countries with high social trust have happier people, better health, more efficient government, more economic growth, and less fear of crime (regardless of whether actual crime rates are increasing or decreasing)."

8. "Most of us pay attention to the wrong things. Most people vastly overestimate the extent to which more money would improve our lives. Most schools and colleges spend too much time preparing students for careers and not enough preparing them to make social decisions."

9. "Interpersonal bonds are critical to being happy day in and day out...overall, economic and professional success exists on the surface of life, and that they emerge out of interpersonal relationships, which are much deeper and more important."

There have been a slew of new and recently published books on happiness including Stumbling On Happiness by Gilbert, The Politics of Happiness by Bok, and the Hidden Wealth of Nations by Halpern.  Here's an interesting talk from Halpern, which includes some great data/findings on happiness levels throughout the world.

drama.jpgThe current political and financial scene in Washington and New York could not be unfolding in a more dramatic fashion.  Key congressional leaders, the President, McCain, Obama, and Secretary Paulson met late into the evening yesterday only to walk away with no deal to rescue US banks and the ailing markets.  Click here for a brilliant account of the events via Stolberg of the New York Times.

Meanwhile, the US Government seized control of Washington Mutual and sold parts of it to JP Morgan Chase.

This is high drama with tons at stake, folks!

swan.jpgIf you're fully engaged in the modern world then you've probably used statistics to make arguments and push a particular interest (like predicting orders or market conditions, if you work at a consumer product company, for example).

Nassim Nicholas Taleb, in both his book, The Black Swan, and more recently in his essay, THE FOURTH QUADRANT: A MAP OF THE LIMITS OF STATISTICS, argues that the banking industry has used statistics to lose over 1 Trillion dollars thus far (more than the industry has ever made)!

Prima facie, the argument seems convincing, but go ahead and read the essay critically and let me know what you think.

Here's some content from the essay:

Statistical and applied probabilistic knowledge is the core of knowledge; statistics is what tells you if something is true, false, or merely anecdotal; it is the "logic of science"; it is the instrument of risk-taking; it is the applied tools of epistemology; you can't be a modern intellectual and not think probabilistically--but... let's not be suckers. The problem is much more complicated than it seems to the casual, mechanistic user who picked it up in graduate school. Statistics can fool you. In fact it is fooling your government right now. It can even bankrupt the system (let's face it: use of probabilistic methods for the estimation of risks did just blow up the banking system).

panic.jpgIf you're any where near the NYC metro area, then you're bound to notice great tension in the air.  The tension is the by-product of recent financial news headlined by the financial giant Lehman Brothers filing for bankruptcy.  Today's NY Times summarizes the current state on Wall Street well:

Nervous investors tried to make sense of a rapidly changing financial landscape on Monday as the State of New York offered American International Group a lifeline, the Bank of America began the task of assimilating Merrill Lynch and Lehman Brothers started its journey into bankruptcy.

The surprising development surrounding this disastrous Monday is that the Fed allowed Lehman to file for bankruptcy.  If you remember, the Fed rushed in to bail out Bear Stearns over concerns that if a major bank was allowed to go bankrupt, financial disaster would follow. 

So what can we make of the recent developments?  From the latest news reports, there are certainly more banks to fall (even the mighty Goldman Sachs is mentioned) and with no real, grand, government intervention likely, we may see some real downturns before the Banking sector can recover.

Read all about the current financial misery at:

NY Times Business section

Wall Street Journal

Financial Times

 

farewell.gifGregory Clark's new book, A Farewell to Alms: A Brief Economic History of the World asks some pretty big economic questions:

- Why do certain countries prosper while others find it so difficult to grow?

- Why did the Industrial Revolution occur in England during the 17th century?

- How do cultural attitudes play a role in economic development?

Clark also challenges modern day economists to better understand history and I couldn't agree with him more. After all, economics is not just about number crunching, hedging, banking, international trade, etc., rather the field is also about understanding current economic conditions in relation to what has happened in the past. 

bruno.jpgThe NY Times has a terrific interactive map on how people across the world spend their discretionary income.  Some interesting findings include Japan spending more on recreation than clothing and Greece throwing money at clothing versus electronics.  Read the full article here.

The US Government likes to keep unemployement between 2-5 percent, 0 unemployment is actually a bad thing (according to some economists), so it's quite surpising to see the latest unemployment figures at over 6 percent.

Have you ever given much thought to what it must have been like for an intellectual during the Inquisition?  Say, for example, you opposed the Church and read a little Plato; that could get you in some serious trouble, as it did for the sixteenth - century heretic Giordano Bruno.

rodrigo.jpgNPR ran a piece on US born psych-folk singer, Rodriguez.  Rodriguez is a completely obscure artist (outside of South Africa, Australia, and New Zealand), but is know enjoying a renaissance after the re-release of Cold Fact.

You can read Rodriguez's bio at Joe's Pub here and listen to his single Sugarman here.

health.jpgNPR aired a series of radio reports on the US health care system as it relates to Europe and Asia and they, in sum, described how other countries manage to run state sponsored, universal, health care programs.

The program was eye opening!

National_IQ_Lynn_Vanhanen_2006_IQ_and_Global_Inequality.pngGiven a recent conversation on "where would you live in the world" I dug up some info on 1., standard of living and 2., human development index.  Here are some fun facts to consider next time someone asks the "where should you live" question:

 

  • The United States ranks 4th in GDP (or gross domestic product), but 92nd in terms of distribution of wealth (in other words, if you have money in the US it is a great place to live <but given the concentration of wealth in the US, most individuals don't benefit from high GDP and associated increases in productivity>). 

  • HDI or Human Development Index measures average achievement of a country based on life expectancy, adult literacy rate, and gross domestic product per capita at PPP or purchasing power parity (basically, how to compare the purchasing power of two currencies). 

Here are the top ten:

  1. Norway
  2. Iceland
  3. Australia
  4. Luxembourg
  5. Canada
  6. Sweden
  7. Switzerland
  8. Ireland
  9. Belgium
  10. United States

So, where would you live?  If you got bucks, set up camp in the US; if not, pack your bags and move the clan!

- from the UN (http://hdr.undp.org/en/)

You can always count on HBO to experiment with new series and this summer is no exception with the premier of Generation Kill.

Generation Kill is based on Evan Wright's book which follows the Marines of the First Recon Battalion through the first forty days of the Iraq War.

The series is nicely done, including a great performance by the highest ranking official on the ground, "the Godfather:"

 

cusl08_hitchens0712.img_assist_custom.jpgThe writer Chrisopher Hitchins participated in a water boarding session to truly understand the techniques used by the American government at Guantánamo and elsewhere.  You can view the video here, courtesy of Vanity Fair magazine.

If you've spent any time in New York City then you're probably well aware of the NY / NJ Port Authority; they run the Hudson River crossings (and constantly increase tolls), World Trade Center re-building project, etc.  The NY Times recently ran a nice article profiling the Executive Director of the agency, Christopher O. Ward, who happens to have a degree from the Harvard Divinity School (should we be praying when we cross any of the bridges?).

 

If you were lucky enough to view the Wimbeldon final this weekend, you most likely watched the most epic, modern day, tennis match of all time.  The match lasted a record 4 hours and 48 minutes (the match started at 9AM EST), including two 25 minute plus rain delays.

Nadal took the first two sets and Federer won two tie-breaks to earn the 3rd and 4th sets.  The final set came down to a Nadal break of serve, who eventually went on to win 9-7 when Federer hit a forehand into the net.

Here's the championship point:

 

The NY Times frontpage included an exhausted Nadal slumped to the ground (or grass)And here's some coverage from the BBC.

 

monkeys_ernestcline.jpg

The New York Times ran a front page article this morning with the title, "Monkeys Think, Move Artifical Arm as Own." and my first thought was how are we defining "think?"  For example, there are certain bees that engage in very organized flight patterns that convey, "danger", "food", etc. to other bees, but the academic community hasn't come out and declared that bees have language!  The same holds true for the monkeys in the experiment cited in the New York Times; that is, while the primate has willed the artificial arm to move, we can't logically conclude that the monkey can now ponder whether God exists or if chicken would make for a nice dinner.  "Think" is a very strong word and the New York Times should have thought longer about the usage in a headline on the front page.

There is a moving article in the New York Times this morning about a couple (Wang Zhijun and Li Wanzhi) that survived last Monday's earthquake in China. 

The article reminded me of the book, The Long Walk the story of a group of Siberian prisoners who escaped and trekked 4,000 miles to their freedom in India.

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