Sunday, November 30, 2008

Schneier "cautiously optimistic" about Napolitano as possible head of DHS

Security expert Bruce Schneier likes what he hears from Obama's potential head of the Department of Homeland Security:

New DHS Head Understands Security. This quote impresses me:

Gov. Janet Napolitano, D-Ariz., is smashing the idea of a border wall, stating it would be too expensive, take too long to construct, and be ineffective once completed.

"You show me a 50-foot wall and I'll show you a 51-foot ladder at the border. That's the way the border works," Napolitano told the Associated Press.

Instead of a wall, she said funds would be better utilized on beefing up Border Patrol manpower, technology sensors and unmanned aerial vehicles.

I am cautiously optimistic.

Saturday, November 29, 2008

Government uses scare tactics in recent terrorist attack warning

Security expert Bruce Schneier is critical of the recent warning that terrorists might target the New York City subway system:
An internal memo obtained by The Associated Press says the FBI has received a "plausible but unsubstantiated" report that al-Qaida terrorists in late September may have discussed attacking the subway system. ...

"We have no specific details to confirm that this plot has developed beyond aspirational planning, but we are issuing this warning out of concern that such an attack could possibly be conducted during the forthcoming holiday season," according to the warning dated Tuesday.
Got that: "plausible but unsubstantiated," "may have discussed attacking the subway system," "specific details to confirm that this plot has developed beyond aspirational planning," "attack could possibly be conducted," "it's plausible, but there's no evidence yet that it's in the process of being carried out."

I have no specific details, but I want to warn everybody today that fiery rain might fall from the sky. Terrorists may have discussed this sort of tactic, possibly at one of their tequila-fueled aspirational planning sessions. While there is no evidence yet that the plan in the process of being carried out, I want to be extra-cautious this holiday season. Ho ho ho.
What I find deeply troubling is that the government issued this warning about this "plausible but unsubstantiated" threat, while at the same time they were oblivious of the upcoming terrorist attack that occurred the very next day in India. It reminds me of just prior to September 11, 2001, when the government warned of possible terrorist attacks somewhere in Asia, but completely missed the actual attack that would occur days later in the U.S.

Tuesday, November 25, 2008

Fiscal stimulus badly needed yesterday!

Congress is fiddling while the economy is quickly getting worse:
As The Economist went to press, a Democrat-backed plan for a $100 billion fiscal boost, which included a modest rise in infrastructure spending and some aid to the states as well as a misguided bail-out for Detroit’s carmakers, seemed doomed in the Senate. The lame-duck Congress looks set to deliver nothing more than an extension of unemployment benefits. Serious debate about a broader stimulus has been put off until the new president and legislature take over in January.

That may not seem long. But given the deterioration of America’s economy in recent weeks, the delay is dangerous. ...

Normally spending splurges are to be distrusted, but the scale of this downturn argues for bold budgetary action. Large sums will be needed: at least $300 billion, or more than 2% of GDP. And with so swift a decline, speed is of the essence...

Cushioning America’s downturn will demand fiscal boldness, but that does not mean eschewing simple, speedy solutions. Quick and plentiful aid to the states is one of the best.

Barack Obama weak on (Internet) security

From The Register:
A cursory look at Change.gov and MyBarackObama reveal enough amateur mistakes to make even the most ardent supporters wonder just who in the heck is in charge of security. For one, the content management system for both of the sites is easily accessible to anyone. And as far as we can tell, neither page is protected by secure sockets layer — the "s" following a web address's "http" that assures you the connection is encrypted.

Security 101 would dictate that pages this sensitive should be restricted to select internet protocol addresses, or at the very least, encrypted to prevent so-called man-in-the-middle attacks. There are no such protections on Change.gov or MyBarackObama, the latter suggesting that this lack of attention to security has been allowed to persist for some time now.

Even more troubling is the discovery that administrative pages for both sites are linked to Google Analytics. This is a hard configuration to make sense of. It means that Google, a private company with important business before the US government, has complete administrative access to one of the government's most important websites. It would also appear to run contrary to this privacy policy pledging "not to make Personal Information available to anyone other than our employees, staff, and agents."

The failure of Obama's webmasters to follow anything remotely like best practices is more than a little troubling because it suggests they don't fully grasp the security realities of living in a Web 2.0 world.

Monday, November 24, 2008

The case for an automaker bailout

Video: While I oppose an automaker bailout, here Morningstar analysts make the case in favor of an automaker bailout.



Nobel Laureate Paul Krugman makes his case:



The case against a bailout is here.

100 companies may not qualify for continued inclusion in S&P 500

24/7 Wall Street says 10% of DJIA stocks may get the boot. Even worse:
It looks on the surface like the S&P 500 has some dilemmas of its own. Based upon market caps and prices, something to the tune of almost 100 companies might not qualify. The good news is that there might not be enough replacements for them to get the boot.
With good news like that, who needs bad news?

Hat tip: Tastylunch's CAPS Blog

Sunday, November 23, 2008

Barack Obama: School choice hypocrite

Like the Clintons before them, the Obamas prove to be school choice hypocrites, favoring school choice for wealthy people like themselves but favoring underperforming public school monopolies for the poor and middle class:
The Associated Press is reporting that the Obamas have chosen the Sidwell Friends School in Washington for daughters Sasha, seven years old, and Malia, 10. The private Quaker school’s alumni include former presidential offspring Chelsea Clinton and Tricia Nixon Cox, as well as a former princess of Japan.

Sidwell Friends beat out another elite school, Georgetown Day School. Michelle Obama and her daughters reportedly visited both schools on Tuesday. Sidwell, with campuses in Northwest Washington and Bethesda, Md., is home to nearly 1,100 students from pre-Kindergarten to 12th grade. Tuition at the lower school is $28,442 and $29,442 at the middle and upper schools.

A spokeswoman for Michelle Obama was quoted by AP as saying the Obamas feel Sidwell provides “the best fit for what their daughters need now,” including being able to accommodate security and privacy concerns. The Obama girls have also become good friends with Vice President-elect Joe Biden’s grandchildren, who attend the school.

The Obama family also discussed public school options for the girls, according to Washington Mayor Adrian Fenty. The girls currently attend the private University of Chicago Laboratory Schools located in Chicago’s South Side.
Cato @ Liberty points out the hypocrisy:
A few months ago, Barack Obama told a gathering of the American Federation of Teachers that he opposes private school choice programs, adding: “We need to focus on fixing and improving our public schools; not throwing our hands up and walking away from them.”

It’s not clear whether or not the president-elect will be able to fix our public schools, and I don’t know if he’s thrown up his hands, but he and his two daughters have just walked away from the public schools. Again. When they move from Chicago to D.C., Malia and Sasha Obama will be moving from the prestigious private Lab School to the prestigious private Sidwell Friends school — Chelsea Clinton’s old stomping ground.

Not that there’s anything wrong with that. In fact, it’s wonderful that the Obamas had such a broad range of public and private school choices available to them. What’s puzzling is that the president-elect opposes programs that would bring that same easy choice of schools within reach of families who lack his personal wealth.
The reason one should favor school choice is that our public school system is a monopoly and monopolies tend to be inefficient. Competition forces institutions to improve or die. Monopoly allows them to stagnate.

America's colleges have to compete with each other, so it is not surprising that our college system is widely considered the best in the world. Our local public school monopolies face almost no competition, so it should not be surprising that America's public school students generally rank quite low on international tests.

With regards to different standards for the rich and powerful, Barack Obama is not change we can believe in. Instead, he's just more of the same.

Buffett says Detroit automakers must change

Warren Buffett gave his thoughts on the automakers in a recent interview:
Billionaire investor Warren Buffett said U.S. automakers need a new business model to better compete, whether it takes bankruptcy or a government bailout to achieve.

Buffett said any automaker bailout package should include a business solution and be negotiated by the president, not Congress.

The government should insist top executives at Ford Motor Co., General Motors Corp. and Chrysler LLC invest a significant percentage of their own net worth in the Detroit-based companies, Buffett said, ensuring both executives and taxpayers would share in any profits or losses.

Buffett said the government should be able to drive a deal like one of the ones he makes when Berkshire buys businesses, because automakers appear on the brink of bankruptcy.

Buffett said he'd tell the auto executives, "'We'll give you more upside [than bankruptcy], but you're going to lose if we lose."'

Bankruptcy would be a poor solution for the auto industry, Buffett said, so he hopes a better way can be found to work out the union contracts and other issues the companies face.

Saturday, November 22, 2008

Barack Obama and counter-terrorism

The Foreign Policy Association's terrorism blog critiques Barack Obama's anti-terrorism stances:
Here is what I know of Obama’s view of the ‘War on Terror’ and International Conflict.
  1. He has opposed the War in Iraq from the on-set, yet now hails the surge as a success and will defer further judgments on troop deployment to ‘commanders on the ground’.
  2. While opposing the War in Iraq, he has frequently advocated intervention of some sort in troubled Darfur.
  3. He opposes the torture or mistreatment of military detainees.
  4. Obama would like to see an increased American presence in Afghanistan.
  5. He is willing to launch military strikes within other nations should they be unable or unwilling to respond to terror-specific intelligence.
  6. He views an unstable Pakistan and a nuclear-armed Iran as grave dangers to the international community and the United States.
  7. In broad terms he views terror as an issue of law enforcement, not military engagement, although some military intervention is necessary.
All of this is sensible, rational, and pragmatic. However, like the Clinton years, it lacks a cohesiveness and clarity that is beneficial when launching a renewed terror strategy. Clinton’s biggest flaw was his lack of an over-arching principle. Bush the elder had his ‘new world order’, yet Clinton took every issue on a case-by-case basis. Engage in Africa for one conflict, yet ignore the other. Attack bin Laden for one bombing, yet ignore other atrocities. For better or worse, the Bush administration understood their position and was able to execute their policy with effectiveness. The American people too, understood the actions taken by their leaders.

Obama runs the very real risk of having to explain every single action he takes, defend each and every decision, and waste time explaining to a weary world why America has gone down her specific path.