Bill Gates: charity begins at home

The Bill & Melinda Gates Foundation is set up to give away $38 billion (plus another $30 billion pledged by Warren Buffett).

While I'm in the mood for mad ideas, how about sparing some fraction of that (oh, a billion?) to go back to Bill's crazy source code and finally straighten out all the problems with Microsoft's core products, then send out a one-use-only disk to all previous purchasers, to reload everybody's programs with reliable updated versions?

Or should I stick with dreaming up more realistic schemes, like the deposit-free banking idea?

Fractional reserve banking - why bother?

Karl Denninger comments on the unfolding crisis of non-subprime mortgages, where he thinks losses will be even worse.

A question: why bother with any kind of reserve?

Once you've determined that banks can lend a high multiple of deposits, you may as well make deposits entirely irrelevant. In fact, it would save quite a bit on operating costs if you could have banks that specifically didn't take deposits from anybody - no cash in or out, so no tellers, no branches. Let the Federal Reserve or the Bank of England give a handful of providers a total lending limit, and then stand back and watch them pump away.

Insolvency? Loan-to-value not good enough? Raise the limits again, pump harder. Get a punter to overpay for one house and you increase the value of all the others in the street, so making their mortgages safer. And if the bank doesn't have to pay interest to depositors, it can charge as little as it likes for its loans.

I can't see the flaw here, any more than I can see the difference between a banker and a swindler.

I don't know why I didn't think of it before.

House prices underpinned by shortages, boosted by inflation?

The Centre for Economics and Business Research reckons house prices will steady next year and shoot up for three years after that, thanks to housing shortages and building project cancellations - reports The Grumbler.

"Real estate could become a very good investment and inflation hedge once the government starts seriously printing money," commented Jim from San Marcos (who still has a realtor's licence) after his July 27th post.

I hate computers

Currently I use Windows, like most people, and my experience of this is certainly like the picture on the left. No wonder there are so many Bill Gates jokes, e.g. "The president of Lotus walks into an elevator with a gun in his hand. In the elevator are: Saddam Hussein, Timothy McVeigh, and Bill Gates, but there are only two bullets in the gun! Who does he shoot? A: Gates, twice, to be sure."

I also have an ASUS laptop that has a nervous breakdown when I ask it to connect to the Internet and my printer at the same time. In fact, it's now objecting to my mouse as well. I half-suspect the power management system is compromised by some ASUS virus that informs Peking of my every keystroke; put that down to paranoia if you like, but we'll see what the history books say one day.

But is the Mac really as simple and reliable as the middle picture suggests? And is Linux really so powerful and jazzy? Before I throw this computer from some carefully-selected high place, I'd appreciate guidance on its replacement.

By the way, here's Daniel Bozet's original cartoon; I thought the one above looked unbalanced.

And here's some techno comment on BoingBoing, that obviously I don't quite understand.

If telephones were like this, I'd be using liveried runners.

Check memes with Snopes.com

My American brother and his wife put me on to Snopes.com, a service that sources and corrects rumours that spread through the Internet. One example is a very sharp, funny diatribe on the Middle East, allegedly by Dennis Miller, but actually adapted from this 2002 article by Larry Miller.

What have I learned?

• Meme alterations tend to add spite - compare the original with its viral successor
• I should include Snopes and Larry Miller in my blogroll

In the piece concerned, I particularly liked the imagined reversal of position between Jews and Arabs. I'm always grateful for a mental flip that lends me a new perspective.

USA $800 billion subsidy to Asian investors

Read Karl Denninger on how the Fed has been forced to prop up shares of Fannie Mae and Freddie Mac, to please foreign equity holders such as China.

Further comment from Mish.

The taxpayer pays all - and presumably we're looking to do something similar here, to keep the banking show on the road.

This may be the time when those predictions about the Dow hitting 9,000 and gold breaking through $1,200 start to come true.

Gold

Gold now below $900, heading perhaps for the $875 forecast by "Jesse" a couple of weeks ago. Will the second part of the prediction be proved correct, also?