File under odd marketing ploy: Penguin UK is offering up 30 audio samples from their catalog of books for intrepid djs to incorporate into their mashups. (I think of got the lingo straight here, no?) Spoken word snippets are available from classic titles like The Great Gatsby, Moby Dick, and Nick Hornby’s How to be Good. So, as all media continue to converge toward a single point do not be surprised to find some “Call me Ishmael” in your hip hop.
I added several books to the reading queue today. In New York last weekend I found a half price paperback copy of Jon Lee Anderson’s Guerrillas: Journeys in the Insurgent World. As you may know, Anderson is a stellar war reporter for the New Yorker. His writing combines thrill and adventure and danger with an unmatched depth of knowledge on the conflicts he covers. Guerrillas collects his reporting on “the mujahedin of Afghanistan, the FMLN of El Salvador, the Karen of Burma, the Polisario of Western Sahara, and a group of young Palestinians fighting against Israel in the Gaza Strip.” A few weeks earlier, at Myopic Books, an unbelievably well-stocked used bookstore in Wicker Park, I picked up a couple of late 20th century classics, Ragtime by E.L. Doctorow and Winter’s Tale (on Emre’s recommendation) by Mark Helprin. I was also lucky enough to receive in the mail from my publisher friends: The Men Who Stare at Goats by Jon Ronson (I’m a big Ronson fan), Rick Moody’s upcoming novel The Diviners, and the Booker longlister The People’s Act of Love by James Meek, which I’m a quarter of the way through. Recently, I finished the five LBC nominees for the fall, and in the meantime, with the additions of the books listed above, the queue has ballooned to it’s largest size yet, 48 titles – so much to read, so little time.
Miss Snark is the blogging pseudonym of a New York agent who has made herself available to all the aspiring writers out there who are befuddled and bewildered by the publishing process. When particularly perplexed, these writers turn to Miss Snark with their questions – despite the better than fair chance of being called a nitwit by Her Snarkiness. Aided only by her faithful poodle Killer Yapp (KY), Miss Snark has come to the rescue of hundreds of writers in the months she’s been online answering questions on protocol, procedure and not looking like a fool when trying to turn your manuscript into a published masterpiece. Her advice is refreshingly frank and entirely devoid of BS, and she has a loyal following. Why does she devote so much time to such a thankless endeavor? I can only assume she’s trying to make the world a better place (but then again she may be banking on the many pails full of gin she’s now owed by the many writers she has helped.)I had been under the assumption that all aspiring writers were avid readers of Miss Snark, but it has recently come to my attention that this is not the case. So, if you hope to have your book published one day, and you aren’t yet reading Miss Snark, I suggest you start now. And this is doubly true if you are agentless and looking. These conditions are not, however, prerequisites. I have no plans to write a book anytime soon, and I can’t help but read Miss Snark, if only for the fearful laughs she elicits.
Last week, Max directed our attention to a major new piece of reporting on the financial crisis: a Portfolio article by Millions favorite Michael Lewis. The author of Liar’s Poker, among other books, Lewis is a gifted explainer of an industry badly in need of explanations. In the Portfolio piece, for example, he immerses us in the world of short-sellers who saw the subprime meltdown coming. However, the key paragraph – wherein trader Steve Eisman has an epiphany about how investment banks are leveraging subprime bonds – resorts to a sports metaphor, and thus fails to demystify an elusive instrument at the center of the financial crisis: the credit default swap (CDS).”When a fantasy player drafts Peyton Manning, he doesn’t create a second Peyton Manning to inflate the league’s stats,” Lewis writes.But when Eisman bought a credit-default swap, he enabled Deutsche Bank to create another bond identical in every respect but one to the original. The only difference was that there was no actual homebuyer or borrower. The only assets backing the bonds were the side bets Eisman and others made with firms like Goldman Sachs. Eisman, in effect, was paying to Goldman the interest on a subprime mortgage. In fact, there was no mortgage at all. ‘They weren’t satisfied getting lots of unqualified borrowers to borrow money to buy a house they couldn’t afford,’ Eisman says. ‘They were creating them out of whole cloth. One hundred times over! That’s why the losses are so much greater than the loans.’I’ve heard financial insiders inveigh against peons who “don’t know a credit-default swap from a turnip,” but how are we to wise up, if explanations only come in the form of metaphors (athletic or agricultural)? Grabbing a fig leaf from the N+1 playbook, as it were, I decided to ask a friend in finance to explain the Peyton Manning analogy, as simply as possible. Here’s what he had to say (wait for “the rub”):Assume the following: Eisman buys a crappy mortgage security (say, a $1,000 bond from a mortgage given to a strawberry picker who makes $14,000 dollars per year). Say the mortgage rate the strawberry picker pays is 15%. This means he’s agreed to pay $150 a year to Eisman. But Eisman is worried that the strawberry picker will default because the guy’s house value has collapsed and his income is drying up. Thus, Eisman wants to buy insurance on the $1,000 he’s loaned. The way he does this is via a credit default swap.A CDS is essentially an insurance policy on a loan, and here’s how it works. Eisman finds a counterparty willing to sell him insurance on his loan (a big investment bank like Lehman Brothers). Eisman agrees to pay the bank a fixed rate every year for protection of the mortgage security he owns (the crappier the loan, the higher the rate). Let’s say for the $1,000 loan to the strawberry picker, his rate will be 10%. The bank pays him nothing on a regular basis, BUT, if the borrower defaults, they pay him the full $1,000.So: if times are good and everyone makes payments on time, the payments are structured as follows: The strawberry picker pays $150 per year to Eisman; Eisman pays $100 per year to Lehman (which then uses some of the cash to provision for losses, and uses the rest to make more loans). The strawberry picker gets to keep his house, Eisman keeps $50 per year (loan payment from strawberry picker minus the insurance premium he pays to Lehman), and Lehman gets $100.Got the structure? Now here’s the rub.Imagine Eisman never actually had exposure to the loan in the first place. Being the brilliant skeptic he is, Eisman would never lend $1,000 to a strawberry picker with little income. He thinks that strawberry man is doomed to default on that loan, and he actually wants to bet AGAINST him. So instead of giving the loan and buying insurance, he just buys the insurance (hence the often used and rarely understood term “side bet”). To do this, Eisman still has to pay the “premium” for the insurance he’s bought, and since it’s a risky loan, the rate is high (e.g. $100 per year in the example above). [Though he stands to win $1,000 if the loan defaults.] In effect, Eisman is paying a “subprime-like” interest rate to Lehman every year! That’s what Lewis was getting at.I would have used a different metaphor. I would have said it’s like a New Yorker buying a bunch of home insurance policies in New Orleans because you are expecting that there will be a massive hurricane coming to wreck them. Now lets say that the insurance company took the money you were giving it, didn’t provision for the coming doom, and instead, used that money to lend to more people building and buying houses in New Orleans.That’s leverage upon leverage upon leverage. And that’s the mess that is unraveling before us.
My good and old friend Garth, while describing what struck at his most recent visit to a book store, alerted me to an intriguing first novel by a 26 year old writer. According to the Washington Post, “Matthew McIntosh, young and despondent though he may be, is the real thing.” His book is called Well, and every review I’ve found so far is very positive and at times a touch awed. This is definitly in the “yes pile.” You can find an excerpt on the official page.
A perfect post to leave you with as we head into the long weekend. Perhaps, like many people, you’ve been wondering what Art Garfunkel’s been reading for… oh… the last 39 years, give or take. Luckily, he’s been keeping track.As a result, perusing through the nearly 1,000 books he’s read in that time, I now know that:When I was born, Art Garfunkel was reading Letters from an American Farmer by J. Hector St. John De Crevecoeur.When I graduated high school, he was reading “Our Crowd” by Stephen Birmingham.When I graduated college, he was reading Interpreter of Maladies by Jhumpa Lahiri.And when I got married, he was reading Love, Groucho, the letters of Groucho Marx.What was Art Garfunkel reading on the important dates in your life? (Thanks to John for sending that brilliant link my way)
Those oft-quoted Amazon sales rankings don’t really tell you much. They just give a snapshot of how a book is selling at a particular moment. TitleZ can track how a book’s ranking moves over time. There’s some debate about how much those rankings really tell you, but this is a fun toy nonetheless. (via)
In the Guardian, Tim Adams bemoans the shrinking selection and big budget marketing fees wrought by ongoing consolidation in the British bookselling industry (taking their cues from the American chain stores, it seems.) Behind this trend is the head buyer of Waterstone’s, a man named Scott Pack.(via Using Books Weblog)
Colleen (a regular contributor at Bookslut) sent me an email about a program she’s working on to help kids displaced by Hurricane Katrina. It sounds like a great plan; here are the details:I’m working with a group in Baton Rouge who are helping children sheltered with their families at Southern University. We have put together a couple of wish lists of books and games that the folks at Parkview Baptist Church will happily deliver to the SU kids and other area shelter kids. Feel free to buy off the lists, and send the links on to everyone you know and pass on my email to anyone who has any questions. We’ve had some success so far and several publishers, authors, illustrators and reviewers are all kicking in copies of books they are sending direct. If any of your readers would like to do that, I can provide the mailing address.