After Timequake, Kurt Vonnegut declared that his career as a novelist was over, but in recent years Seven Stories Press has collected the scattered writing he has done since his retirement into small books. A new, and perhaps more substantial, collection called A Man without a Country comes out in September. Seven Stories describes it thusly: “Based on short essays and speeches composed over the last five years and plentifully illustrated with artwork by the author throughout, A Man Without a Country gives us Vonnegut both speaking out with indignation and writing tenderly to his fellow Americans, sometimes joking, at other times hopeless, always searching.”
Readers of the Sunday funnies may have spotted an odd juxtaposition somewhere between “Garfield” and “Beetle Bailey” this morning. “Sally Forth” writer Ces Marciuliano has reimagined the opening lines of Pynchon’s postmodern classic Gravity’s Rainbow as a baseball-themed essay by grade-schooler Hilary. We will be running an essay here on literary mashups tomorrow, but this has to be one of the stranger intersections – the banality of the comics page, crossed with one of the more famously challenging novels in history. What a goofy, subversive thing to do.See Also: Pynchon fans, Inherent Vice drops in just a week.[Image and link via Ces Marciuliano]
Now that Thanksgiving weekend has finally come to a close, I have a bit of time to let you know about one or two odd and interesting books I’ve noticed lately. I happen to think that Ken Kesey’s One Flew Over the Cuckoo’s Nest is one of the more enjoyable books I’ve ever read, and I also loved reading about Kesey in Tom Wolfe’s The Electric Kool-Aid Acid Test (which, by the way is fantastic if read back to back with Hunter S. Thompson’s Hell’s Angels since the books tell essentially the same story but with different points of view and writing styles). So, I was rather intrigued when I came across Kesey’s Jail Journal. It’s a colorful amalgamation of collages, drawings, and text that he created during various stints behind bars over the course of thirty years.Another interesting looking book is Six Feet Under: Better Living Through Death which is a companion book to the HBO series. I’m not a big fan of TV show companion books. They are nearly always hastily produced assemblages of screen captures and mind-numbingly idiotic text, but this one appears to break the mold a bit. The book isn’t an episode guide; instead it meanders through various backstories in an appropriately eerie sort of way, with lots of odd photos and ephmera related to the show. In that sense it’s interesting for what it is, but it’s also a triumph in book design. The book slides into this odd, plastic, vertical slip cover that is faintly reminiscent of a coffin, and the book itself lacks a traditional spine, and instead appears to be a series of booklets artfully woven together.Finally, I’m sure all the Mcsweeney’s watchers have seen this item, which for me falls into the annoying “weird for the sake of being weird” category. Projects like William T. Vollman’s Rising Up and Rising Down keep me interested, but it bugs me to see McSweeney’s squandering the advantages they have over other independent publishers with so much forced silliness and ironic posturing.
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.
Wow, the Venezuelan government has printed one million free copies of Don Quixote to celebrate the book’s 400th anniversary. That sure beats the “one book one city” thing we have in the states. Read about it at the BBC. (via bookglutton). Also, anyone who has endured the long wait for the Edith Grossman edition of Quixote to come out in paperback, take heart, it arrives on May 1. See also 400 Windmills.
Still in the throes of controversy surrounding James Frey’s A Million Little Pieces, Oprah has selected Elie Wiesel’s memoir Night as the next selection for her book club. While this selection was no doubt in the works long before the Frey controversy, the juxtaposition is still remarkable. Frey’s confessional, sensationalized addiction memoir, the credibility of which seems to crumble further with every passing day, looks awfully silly next to the beloved memoir of a Nobel Peace Prize winner and Holocaust survivor whose character is unassailable as far as I know. In the New York Times, Wiesel says he hasn’t read Frey’s book (big surprise), but then goes on to make some comments that seem to me to be directed at Frey’s fast and loose treatment of the truth (emphasis mine):He acknowledged that some people and institutions, including on occasion The New York Times, have referred to Night as a novel, “mainly because of its literary style.””But it is not a novel at all,” he said. “I know the difference,” he added, noting that Night is the first of his 47 books, several of which are novels. “I make a distinction between what I lived through and what I imagined others to have lived through.”As it is a memoir, he said, “my experiences in the book – A to Z – must be true.” He continued: “All the people I describe were with me there. I object angrily if someone mentions it as a novel.”Meanwhile, the Seattle Post-Intelligencer reports that Amazon is changing the classification of Night from fiction to memoir. As of this writing, Night is number one on Amazon, bumping Pieces to number two.
An uncharacteristically thorough post at Gawker goes in depth on the make up of the current staff of the New Yorker, pointing out that the resurgent magazine under editor David Remnick is staffed by a disproportionate number of writers brought on during the tenure of reviled editor Tina Brown. Interesting stuff.