Roving thoughts and provocations

Paul Samuelson and the Obscure Origins of the Financial Crisis

Jeremy Bernstein

Some time in the early 1950’s the late Paul Samuelson received a post card from L.J. “Jimmie” Savage, a noted mathematical statistician. It was one of several he had sent out at about the same time. Savage’s post card to Samuelson, and probably the others, said that it was essential that Samuelson read Théorie de la Spéculation, the Ph.D. thesis of the French mathematician Louis Jean Baptiste Alphonse Bachelier. Samuelson had never heard of Bachelier so he did not know that the thesis had first been published in 1900. Reading the thesis changed the course of Samuelson’s work. He improved Bachelier’s mathematics and used it to study the prices of warrants—options to buy, at a future date, stock issued by a company. These methods were passed on to his students. But for some of them, Bachelier’s ideas provided inspiration for a theory of financial engineering—the use of complex mathematical models to make risky investments that, taken to extremes (which Samuelson himself never did), nearly caused the collapse of our financial system in the fall of 2008.

On David Levine (1926–2009)

Garry Wills

It is a charming little dog, meticulously drawn, that faces us, all its curlicue hairs traced, its cantilevered thin legs ending in little paws (1971). Only on a second look do we see that the tiny face staring out at us from this fluff ball is that of Richard Nixon. Then, in a double-take (click!), we realize that this is Checkers, the dog Nixon used in his maudlin television address to stay on Dwight Eisenhower’s presidential ticket in 1952. A less adventurous artist might have done the obvious—made Nixon cower behind the dog he was using as protection. Levine did the unexpected. He made Nixon the dog. And as usual, there was a deeper purpose. He was saying that Nixon would not only do anything to get what he wanted, he would become anything. Later, when abortion was the issue, Nixon would become a fetus (1971). How does one give a fetus identity? With the nose, of course, the Nixon nose that Levine celebrated so relentlessly.

Death in Detention: Russia’s Prison Scandal

Amy Knight

Alexander Zemlianichenko/AP Images

The horrors of Soviet prisons and labor camps were described vividly in Aleksandr Solzhenitsyn’s Gulag Archipelago, Yevgenia Ginzburg’s Into the Whirlwind, and later, by the Soviet dissident and former political prisoner Anatoly Marchenko, in his 1969 memoir, My Testimony. To judge from a disturbing new report about the tragic death of 37-year-old lawyer Sergei Magnitsky in a Moscow prison in late November, Russia’s current penal system is almost as bad as it used to be.

The Crisis of Juvenile Prison Rape: A New Report

David Kaiser and Lovisa Stannow

When Troy Erik Isaac was first imprisoned in California, his cellmate made the introductions for both of them. “He said to me, ‘Your name is gonna be Baby Romeo, and I’m Big Romeo.’ He was saying he would be my man.” Troy was twelve at the time. A skinny, terrified little kid, he accepted the prisoner’s bargain being imposed on him: protection for sex. He wasn’t protected, though. Soon he was attacked and raped at night by another cellmate, a sixteen-year-old. He told staff he was suicidal, hoping to be placed in solitary confinement, but they ignored him; the rapes continued.

Beauty Disturbed: Almodóvar’s Broken Embraces

Sarah Kerr

In the summer of 1989, I spent several weeks in Madrid. It was my first time out of the United States, and I was overwhelmed by the shock of difference: the life-giving daily approach to time; the ghost dregs of imperial supremacy; the post-Franco traces of bleak limbo that were thankfully almost done eroding; the particular charisma, not quite the same as what I had absorbed from so far away, in books and movies, as “European charm.” There was a pop soundtrack to that summer, an album that had come out months earlier but was still at its viral peak. One addictive song especially spilled out of windows onto plazas, with a stately beat and a girlish voice recalling (from the male point of view) an affair with a woman described as half-finished, with the body of a gypsy and “an eye here, a tooth there.”

Gaza & the Israeli Peace Movement: One Year Later

David Shulman

Oren Ziv/Activestills.org

The fact that Gaza is still under siege has hardly infiltrated Israeli awareness. The first anniversary of Israel’s military intervention in Gaza, Operation Cast Lead, has of course been noted in the Israeli press. The predominant tone, even in Haaretz, supposedly the voice of the liberal left, is almost smug. The rain of Qassam missiles on Israeli cities and villages has more or less halted; in recent months housing prices in Sderot, which is less than a mile from Gaza, have soared, and demand for plots of land in the moshavim close to the Gaza border far outstrips supply. So for Israelis the campaign was clearly a success, despite the 1,400 Palestinian dead, the 3,540 houses destroyed in Gaza, the devastation of the civilian infrastructure there, and the international outcry about possible Israeli war crimes.

Slide Show: Dominique Nabokov on Robert Frank’s Americans

Dominique Nabokov

Coinciding with the fiftieth anniversary of Robert Frank’s The Americans, the exhibition “Looking In: Robert Frank’s The Americans” is on view at the Metropolitan Museum of Art in New York City through January 3, 2010. Dominique Nabokov—whose own photographs appear regularly in The New York Review—saw the exhibition both in New York and in Washington, where it originated at the National Gallery of Art. Recently, she stopped by the office to talk about why Frank’s photographs are not only still relevant but also a “miraculous” body of work.

Copenhagen, and After

Tim Flannery

On April 5, 2009, Denmark got a new Prime Minister, Lars Løkke Rasmussen. He was the third Danish Prime Minister in a row to bear that surname, replacing Anders Fogh Rasmussen, who had been named the new Secretary-General of NATO. A capable local politician in his forties, Lars Rasmussen had, in contrast to his predecessor, almost no experience in international politics. His appointment received little media coverage outside Denmark. But just eight months later, with Denmark the host of the Copenhagen climate summit (officially the 15th United Nations Climate Change Conference, or COP-15), Lars Rasmussen’s—and Denmark’s—lack of experience in international politics would have a global impact.

Cate Blanchett and Blanche Dubois

Hilton Als

At one point during Blanche’s final mad scene in the Sydney Theater Company’s much discussed revival of Tennessee Williams’s modern-day masterwork, which just concluded its sold-out run at the Brooklyn Academy of Music, a woman sitting across the row from me began to sob uncontrollably. Despite her obvious pain, she could not look away from the stage’s brightly lit scene of daytime disaster. One wondered about the source of that spectator’s tears. Was it the sight of Blanche being led to her dark future, her sister Stella’s flush cheeked confusion, or both?