List of Archived Posts

2012 Newsgroup Postings (05/12 - 06/04)

Top IBM Salespeople Are Leaving In Droves, Say Those Who Have Quit
Did the 1401 use SVC's??
What are the implication of the ongoing cyber attacks on critical infrastructure
Quitting Top IBM Salespeople Say They Are Leaving In Droves
Hard drives: A bit of progress
What are the implication of the ongoing cyber attacks on critical infrastructure
Adult Supervision
Adult Supervision
Adult Supervision
JPM LOSES $2 BILLION USD!
Accidentally Released - and Incredibly Embarrassing - Documents Show How Goldman et al Engaged in 'Naked Short Selling'
There's Not an App for That: When Will Our Smartphones Be Recongized as Valid Forms of ID?
JPM LOSES $2 BILLION USD!
Organizational Hierarchy; Adapting Old Structures to New Challenges
Psychology Of Fraud: Why Good People Do Bad Things
Stars for hire
Psychology Of Fraud: Why Good People Do Bad Things
Co-existance of z/OS and z/VM on same DASD farm
VM Workshop 2012
Co-existance of z/OS and z/VM on same DASD farm
Psychology Of Fraud: Why Good People Do Bad Things
Closure in Disappearance of Computer Scientist
Psychology Of Fraud: Why Good People Do Bad Things
VM Workshop 2012
Co-existance of z/OS and z/VM on same DASD farm
VM370 40yr anniv, CP67 44yr anniv
IBM's first tape drive turns 60 (makes you feel old!)
Weak PINs, Habits Increase Risk of Financial Fraud
REPEAL OF GLASS-STEAGALL DID NOT CAUSE THE FINANCIAL CRISIS - WHAT DO YOU THINK?
24/7/365 appropriateness was Re: IBMLink outages in 2012
24/7/365 appropriateness was Re: IBMLink outages in 2012
IBM bans Siri: Privacy risk, or corporate paranoia at its best?
IBM bans Siri: Privacy risk, or corporate paranoia at its best?
Cartons of Punch Cards
Co-existance of z/OS and z/VM on same DASD farm
IBM bans Siri: Privacy risk, or corporate paranoia at its best?
Should IBM allow the use of Hercules as z system emulator?
Hard drives: A bit of progress
Should IBM allow the use of Hercules as z system emulator?
Van Jacobson Denies Averting 1980s Internet Meltdown
Should IBM allow the use of Hercules as z system emulator?
VM Workshop 2012
"25 Years of IBM's OS/2"
High Availability on IBM System i
Cartons of Punch Cards
Fareed Zakaria
Why America Is Slouching Towards Third World Status
How Selecting Voters Randomly Can Lead to Better Elections
Owl: China Swamps US Across the Board -- Made in China Computer Chips Have Back Doors, 45 Other "Ways & Means" Sucking Blood from US
Mainframes Warming Up to the Cloud
Cartons of Punch Cards
Telephones--private networks, Independent companies?
Wardialing statistics( was: "Cartons of Punch Cards" )
The secret's out for secure chip design
Open source and the National Security Agency, together again
U.S. Needs a National Safety Board for Financial Crashes
Why Hasn't The Government Prosecuted Anyone For The 2008 Financial recession?
VM Workshop 2012
Cartons of Punch Cards
Why Hasn't The Government Prosecuted Anyone For The 2008 Financial recession?
Singer Cartons of Punch Cards
Why Hasn't The Government Prosecuted Anyone For The 2008 Financial recession?
Caches, was Wardialing statistics(
SEC: Taking on Big Firms is 'Tempting,' But We Prefer Picking on Little Guys
Monopoly/ Cartons of Punch Cards
Monopoly/ Cartons of Punch Cards
Monopoly/ Cartons of Punch Cards
Monopoly/ Cartons of Punch Cards
Monopoly/ Cartons of Punch Cards
Monopoly/ Cartons of Punch Cards
Monopoly/ Cartons of Punch Cards
Monopoly/ Cartons of Punch Cards
Monopoly/ Cartons of Punch Cards
Monopoly/ Cartons of Punch Cards
Why So Many Formerly Successful Companies Are Failing
Monopoly/ Cartons of Punch Cards
Monopoly/ Cartons of Punch Cards
Monopoly/ Cartons of Punch Cards
Monopoly/ Cartons of Punch Cards
Monopoly/ Cartons of Punch Cards
Monopoly/ Cartons of Punch Cards
Monopoly/ Cartons of Punch Cards
How do you feel about the fact that today India has more IBM employees than US?
Monopoly/ Cartons of Punch Cards
Monopoly/ Cartons of Punch Cards
Monopoly/ Cartons of Punch Cards
Monopoly/ Cartons of Punch Cards
Monopoly/ Cartons of Punch Cards
Monopoly/ Cartons of Punch Cards
FAA air traffic facility consolidation effort already late

Top IBM Salespeople Are Leaving In Droves, Say Those Who Have Quit

Refed: **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 12 May, 2012
Subject: Top IBM Salespeople Are Leaving In Droves, Say Those Who Have Quit
Blog: Greater IBM
Top IBM Salespeople Are Leaving In Droves, Say Those Who Have Quit
http://www.businessinsider.com/top-ibm-salespeople-are-leaving-in-droves-say-those-who-have-quit-2012-5

from above:
I was paid $40,000 commissions on $12,000,000 in revenue. Why? I was given a $12,000,000 quota. I left in February...and my former region's best and brightest are peeling off.

... snip ...

I was con'ed into going to Boeing summer of '69 ... effectively to help setup what was to become BCS (i was among the first dozen or so employees). At Boeing I was told story about what was motivation for quotas. Announce of 360, first day, Boeing walks into their salesman's office and order huge number of 360s (knowing much more about 360 than the salesman did) ... salesman (straight) commission was largest compensation in IBM that year ... which was motivation for the creation of quota system. Under the new quota system, the same salesman made 100% of the year's quota by the end of the first month ... which resulted in his quota being modified ... resulting in the salesman departing.

recent posts mentioning Boeing and/or BCS:
https://www.garlic.com/~lynn/2012.html#42 Drones now account for one third of U.S. warplanes
https://www.garlic.com/~lynn/2012.html#51 5 meg hard drive
https://www.garlic.com/~lynn/2012.html#52 5 meg hard drive
https://www.garlic.com/~lynn/2012.html#57 The Myth of Work-Life Balance
https://www.garlic.com/~lynn/2012.html#61 Hybrid computing -- from mainframe to virtualization
https://www.garlic.com/~lynn/2012.html#70 Regulatory Agency logo
https://www.garlic.com/~lynn/2012c.html#13 Study links ultrafast machine trading with risk of crash
https://www.garlic.com/~lynn/2012c.html#25 Goldman Sachs P.R. Chief's Accidental Exit Interview
https://www.garlic.com/~lynn/2012d.html#18 Memory versus processor speed
https://www.garlic.com/~lynn/2012d.html#33 TINC?
https://www.garlic.com/~lynn/2012f.html#10 Layer 8: NASA unplugs last mainframe
https://www.garlic.com/~lynn/2012f.html#40 STSC Story

--
virtualization experience starting Jan1968, online at home since Mar1970

Did the 1401 use SVC's??

From: lynn@garlic.com (Lynn Wheeler)
Date: 12 May, 2012
Subject: Did the 1401 use SVC's??
Blog: IBM Historic Computing
wecker .. Brown Univ(?) ... joined dec in mid-72 and was on decnet ... mentioned here
http://www.historyofcomputercommunications.info/Book/7/7.6-DigitalEquipmenCorporation.html

all CMS system calls were 202 (aka "CA") ... had parameter list that normally was identical to command line input ... there was in fact a gimmick for some kernel call routines that would normally invoked by assembler ... to be invoked in an EXEC.

processing for svc 202 would be to check for exec file with that "name", then (program loadable) module (along with synonym and alias processing) then for kernel routine with that name. In 360 time-frame CMS stood for Cambridge Monitor System ... in the morph from cp67/cms to vm370/cms ... CMS morphed into Conversational Monitor System. SVC203 was also added which had function code and was only used for kernel call routines.

Internal CP67 linkage was via SVC 8&12 ... internal CP67 SVC0 was kernel abort. Original CP67 started out with an 100 element savearea call. svc8 had R15 with address of the called routine, svc8 processing would dynamically allocate an available savearea element ... and the called routine would store caller's registers in the passed savearea. svc12 would deallocate the dynamic savearea and return to the caller. System would fail if all 100 saveareas were allocated.

Early on, I modified the SVC 8/12 processing where the saveareas were obtained from a dynamically allocated 4k page. If it ran out of all the saveareas in that page, I would dynamically allocate more out of another 4k page. I had special interface into the page replacement code that would select purely based on whether it page was immediately available (i.e. not-changed ... as opposed to changed which would require delay for the current occupant to be written out). The original code took about 220microseconds and I got code path down to about 75microseconds. I also noticed that there were numerous high-use kernel routines that were "closed" ... aka returned w/o calling any other routine. I changed calls to those routines to BALR linkage and the routines used dedicated savearea in page zero.

cp67/cms was installed at univ. jan1968 ... bare machine os/360 benchmark was 322sec, under cp67 was 856secs ... or overhead of cp/67 534secs. Presentation I gave at fall 68 SHARE meeting
https://www.garlic.com/~lynn/94.html#18

and had reduced overhead fo 113secs (reduction of 421secs).

IBM DASD for a long time had a particular failure mode with loosing power while writing to DASD ... data was in processor memory and had to be transferred over channel to controller to disk once the write started. In power loss there could still be sufficient power for the controller/disk to complete the write operation (including error indicator information) ... but not enough to actually transfer the data from memory over the channel (especially after move from magnetic core to non-core memory. The result would be zeros would get propagated for the trailing portion of the write and valid error correcting information (for the propagated zeros written).

In OS/360 (and the later system derivations) this could show up as corrupted disk if the power-loss happened when any VTOC information was being written.

In CMS, the original CMS filesystem always wrote new filesystem metadata to new disk location and when done would rewrite master file directory record (pointing to new copy). The original CMS filesystem could have a problem if power-loss occurred while CMS master file system directory was being written (but would be a problem with other filesystem metadata written to new location ... since new/old versions weren't swapped until after the master file directory record was written). In the mid-70s the CMS extended file system "fixed" this power-failure mode ... by having two copies of the master file directory ... which it would alternate writes to. On startup, for the extended file system CMS would check to see which was the latest, valid copy of the master file directory by checking information in the trailing part of the records (all as countermeasure to the propagated zero write problem for IBM DASD involving in-progress writes during power failure).

misc. past posts getting to play disk engineer in bldg. 14&15:
https://www.garlic.com/~lynn/subtopic.html#disk

misc. past posts mentioning DASD, CKD, FBA, multi-track search, etc
https://www.garlic.com/~lynn/submain.html#dasd

--
virtualization experience starting Jan1968, online at home since Mar1970

What are the implication of the ongoing cyber attacks on critical infrastructure

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 13 May, 2012
Subject: What are the implication of the ongoing cyber attacks on critical infrastructure
Blog: Greater IBM
And systems designed for closed/safe environments tend to lack countermeasures for operating in the wild, anarchy of the internet.

Before he disappeared, Jim Gray con'ed me into interview for chief security architect in redmond ... went on for a couple weeks ... but we were too far apart on many issues and so didn't accept. Part of redmond issue is that they had started as stand-alone, unconnected on kitchen table and there was large number of applications evolved that were predicated on total take-over of the whole machine. Later there evolved connectivity via terminal emulation which was well-bounded application.

next stage was small, safe, closed, business-specific LANs with no countermeasures for outside forces and lots of network applications that had embedded executable scripting. At the 1996 MSDC held in Moscone the big banners proclaimed support of Internet ... but the repeated theme in all the sessions was "preserve your investment" ... which referred to paradigm of embedding executable scripts in all sorts of files that distributed over small, safe, closed LANs (with no attack countermeasures) ... aka the small, safe, closed, business-specific LANs was remapped to the wild, open anarchy of the internet ... with little additional provisions

up until that time, the main internet attack vector was buffer length overflow endemic in C-language implemented applications. By the start of the next century ... embedded executable scripts attacks had grown to approx. equal to the buffer length overflow attacks (and scanning incoming traffic for specific signatures of embedded executing scripting attacks had become major industry).

Disclaimer: the original mainframe tcp/ip product was done in vs/pascal which had none of the buffer length overflow vulnerabilities that are epidemic in applications implemented in C. past posts mentioning buffer overflow related problems
https://www.garlic.com/~lynn/subintegrity.html#overflow

Long ago & far away, we had been brought in as consultants to small client/server startup that wanted to do payment transactions on their server; they had also invented this technology called "SSL" they wanted to use; the result is now frequently called "electronic commerce". As part of using "SSL" for electronic commerce there were several requirements for how it was used & deployed. For variety of reasons, those requirements were almost immediately violated ... which accounts for large percentage of current day exploits. Another frequent failure mode was that typical electronic commerce servers had numerous kinds of countermeasures. During maintenance, the commerce servers were taken offline and the countermeasures dropped. After maintenance, the countermeasures needed to be reactivated before bringing online. The SQL RDBMS based electronic commerce servers .... probably because of the significantly higher level of complexity ... had significantly larger incidence of forgetting to re-activate all countermeasures after maintenance activity (exploits tend to be proportional to complexity; SQL RDBMS based implementations continue to have a variety of exploits that are complexity related).

from long ago and far away ... in the 60s while I was undergraduate ... I was making lots of operating enhancements and sometimes the vendor would make suggestions. ... while I didn't lean about these guys until much later ... it seems that some number of the suggestions were of the type they could have originated with them:
https://web.archive.org/web/20090117083033/http://www.nsa.gov/research/selinux/list-archive/0409/8362.shtml

gone 404 ... but lives on at the wayback machine ... sometimes you get the welcome page at wayback ... click on the "Impatient!" on the right hand side mid-way down the page.

--
virtualization experience starting Jan1968, online at home since Mar1970

Quitting Top IBM Salespeople Say They Are Leaving In Droves

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 13 May, 2012
Subject: Quitting Top IBM Salespeople Say They Are Leaving In Droves
Blog: Greater IBM
Quitting Top IBM Salespeople Say They Are Leaving In Droves
http://www.businessinsider.com/top-ibm-salespeople-are-leaving-in-droves-say-those-who-have-quit-2012-5

I was con'ed into going to Boeing summer of '69 ... effectively to help setup what was to become BCS (i was among the first dozen or so employees). At Boeing I was told story about what was motivation for quotas. Announce of 360, Boeing walked into their salesman's office and order huge number of 360s (knowing much more about 360 than the salesman did) ... salesman commission was largest compensation in IBM that year ... which was motivation for the creation of quota system. Under the new quota system, the same salesman made 100% of the years quota by the end of the first month ... which resulted in his quota being modified ... resulting in the salesman departing.

image-based authentication???

Three-factor authentication paradigm is

something you know (aka pins, passwords, mother's maiden name, etc)
something you have (aka hardware tokens, physical unique object, etc)
something you are (biometrics, palm prints, iris scan, finger length, etc)

past posts
https://www.garlic.com/~lynn/subintegrity.html#3factor

something you know tend to be further differentiated into shared-secrets & non-shared-secrets. Pins/passwords tend to be shared-secrets ... which then results in requirement to have unique shared-secret for every unique security domain (as countermeasure to cross-domain attacks) and impossible to guess (impersonation attacks).
https://www.garlic.com/~lynn/subintegrity.html#secrets

More than 40yrs ago, installing online system for BCS ... people tended to need relatively few "impossible to guess" (also making them impossible to remember) shared-secrets. Over the past several decades, the number of electronic environments requiring authentication has exploded ... resulting in people needed large scores or hundreds of (impossible to remember) shared-secrets (for authentication). Institutions, acting as if they were sole electronic environment that person has relationship ... would further aggravate situation with rules like monthly changing (impossible to remember) shared-secrets.

An example of how untenable the problem is ... this old (April Fools) IBM Corporate Directive from 1984:
https://www.garlic.com/~lynn/2001d.html#52

April 1st was on Sunday ... the above had been sent to me the friday before from somebody on the east coast ... and I redistributed it around bldg. 28. Over the weekend somebody printed it on corporate letterhead paper and posted it in all the building bulletin boards. Monday morning some number of people took it as valid corporate directive ... the resulted investigation led to mandate that all corporate letterhead paper was required to be kept under lock&key.

disclaimer: we have couple dozen patents in the area of authentication (although all are assigned and we have no current interest) ... including covering transition from institutional-centric paradigm to person-centric paradigm.
https://www.garlic.com/~lynn/aadssummary.htm

In the mid-90s, there were numerous predictions that the telcos were going to take-over the payments industry. The issue is that the telcos were deploying platforms that could handle large number of (cell) phone calls for billing purposes ... the numbers of "transactions" was orders of magnitudes larger than the number of transactions that the conventional payment platforms could handle. The scenario was that these platforms would give the telco industry a competitive advantage in the anticipated huge numbers of micro-payment transactions ... once it took over that emerging payment market ... it would be an easy move up the value chain to taking over the rest of the payment market. The late 90s, saw a pullback of the telcos from the payment market ... 1) the micro-payments weren't emerging like anticipated and 2) there were fraud & risk payment issues that the telcos weren't fully prepared to handle.

The payment industry has been extremely ambivalent with regard to "safe" transactions. For decades, merchants have been indoctrinated that interchange fees (payment industry charges to merchants for each transactions) have been pro-rated with respect to the fraud rate for various kinds of payments. In the early part of the century, there were various "safe" internet payment products (significantly increasing cost/difficulty for crooks to spoof valid transactions) developed that saw very high acceptance levels at the major internet merchants (at the time accounting for approx. 70% of ecommerce transactions). The internet merchants were anticipating an order of magnitude reduction in interchange fees with the "safe" payment products (because of fraud reduction). Then came the cognitive dissonance, the payment industry told the merchants that the "safe" products would basically be a surcharge on top of the highest fee merchants were already paying (basically inverting the interchange fee paradigm merchants were accustomed to ... i.e. fees proportional to fraud). This and a few other circumstances from the first part of the century has been barrier to entry for stronger authentication products.

--
virtualization experience starting Jan1968, online at home since Mar1970

Hard drives: A bit of progress

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: Mon, 14 May 2012 10:12:08
Subject: Hard drives: A bit of progress
Newsgroups: alt.folklore.computers
also (linkedin) IBM co/ex workers (blog)

Hard drives: A bit of progress
http://www.sciencedaily.com/releases/2012/05/120510095620.htm

article mentions A*STAR Data Storage ... seems awfully reminiscent of ADSTAR ... which was the renamed disk division as it was being prepared to be sold off in the early 90s
https://en.wikipedia.org/wiki/ADSTAR

then the management change ... resurrection of IBM ... referenced here:
http://www.tdaxp.com/archive/2012/02/10/review-of-who-says-elephants-cant-dance-by-louis-gerstner.html

The wiki reference also mentions ADSM ... which then becomes TSM. ADSM was a morph of the Workstation Datasave Facility from research (ADSM was trivial upgrade for existing WDSF customers). WDSF started out as the internal CMS Backup ... which I had done for internal datacenters ... some old email
https://www.garlic.com/~lynn/lhwemail.html#cmsback

I've repeated a number of times, a senior disk engineer, in the late 80s, got a talk scheduled at an annual, internal, world-wide communication group conference and opened the talk with the comment that the communication group was going to be responsible for the demise of the disk division. The issue was that the communication group had stranglehold on datacenters (strategic responsibility for everything that cross the datacenter walls) and were attempting to preserve their terminal emulation install base. The limitations were resulting in data fleeing the datacenters for more distributed computing friendly platforms (and disk division was seeing corresponding drop off in disk sales). The disk division had come up with a number of products to address the problem, but the communication group with their "strategic ownership" were veto'ing the products. misc. past posts mentioning terminal emulation
https://www.garlic.com/~lynn/subnetwork.html#emulation

misc past posts being allowed to play disk engineer in bldgs. 14&15
https://www.garlic.com/~lynn/subtopic.html#disk
AMEX, Private Equity, IBM related Gerstner posts
https://www.garlic.com/~lynn/submisc.html#gerstner

Communications group trying to preserve their terminal emulation install base and block distributed computing, client/server, etc ... created stranglehold around mainframe datacenters ... with the result that data (& applications) were fleeing the datacenter. It wasn't specifically communications group vis-a-vis disk division ... it was communications group against the rest of the world; the disk division was somewhat collateral damage ... they could see the flight from the datacenter in the disk sales numbers ... and tried to come out with corrective products.

The resulting flight from the datacenter contributed significantly to the whole datacenter/mainframe downturn and the company going into the red in the early 90s.

--
virtualization experience starting Jan1968, online at home since Mar1970

What are the implication of the ongoing cyber attacks on critical infrastructure

Refed: **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 14 May, 2012
Subject: What are the implication of the ongoing cyber attacks on critical infrastructure
Blog: Greater IBM
re:
https://www.garlic.com/~lynn/2012g.html#2 What are the implication of the ongoing cyber attacks on critical infrastructure

IBM Research last decade did a paper "Thirty Years Later: Lessons from the Multics Security Evaluation" ... I reference in this old post
https://www.garlic.com/~lynn/2002l.html#42

Their paper references Air Force "Multics Security Evaluation: Vulnerability Analysis" done in the early 70s ... available from NIST at:
http://csrc.nist.gov/publications/history/karg74.pdf

Multics was still in use as email server in the late 90s
https://www.multicians.org/site-dockmaster.html

members from the agency attending financial industry standards meetings would list it as their email address. Other Multics information
https://www.multicians.org/multics.html

Some of the CTSS people went to the 5th flr and did Multics ... other of the CTSS people went to the IBM science center on the 4th flr and did work on virtual machine control programs (initially cp40 which morphed into cp67 and finally vm370). Possibly as a result there was always some amount of friendly rivalry between the two groups. Another major multics site was:
https://www.multicians.org/mga.html#AFDSC

So when they were scheduling to come by and talk about getting 20 vm/4341s, I thought it was really great ... as referenced in this old email
https://www.garlic.com/~lynn/2001m.html#email790404b
in this post
https://www.garlic.com/~lynn/2001m.html#15

although as mentioned in the above, over period of six months it grew from twenty vm/4341s to 210 vm/4341s.

--
virtualization experience starting Jan1968, online at home since Mar1970

Adult Supervision

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 14 May, 2012
Subject: Adult Supervision
Blog: Facebook
Adult Supervision
http://www.cato.org//adult-supervision/

In the 90s, there was the fiscal responsibility act ... the baseline budget in the late 90s had budget surpluses retiring all federal debt by 2010. Last decade CBO has decrease in tax revenues of $6T (compared to baseline) coupled with $6T increase in spending (compared to baseline) for a $12T budget gap ... really starting in 2002 after congress allowed the fiscal responsibility act to expire. In the middle of the last decade, the comptroller general (head of GAO) would include in speeches that nobody in congress was capable of middle school arithmetic (based on what they were doing to the budget)

with regard to adult supervision, during the economic bubble there was $27T in CDOs ... at the end of 2008, just the four too-big-to-fail (wells, chase, citi, bofa) were still carrying $5.2T toxic CDOs "off-book". Congress had appropriated $700B for TARP (purchase of toxic assets) w/o knowning how bad the problem actually was (when at least ten times that amount would have been needed). The eventual result, was that other uses for TARP had to be found, and it was left to Federal Reserve to address the problem behind the scenes.
Bank's Hidden Junk Menaces $1 Trillion Purge
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=akv_p6LBNIdw&refer=home

securitized mortgages had been used during the S&L mess to obfuscate fraudulent mortgages. In the late 90s, we were asked to look at improving the integrity of CDO supporting documents. In the congressional hearings into the pivotal role that rating agencies played in the mess, the testimony was that the rating agencies knew that the toxic CDOs weren't worth triple-A but they were willing to sell them anyway. In the wake of Enron/Worldcom, congress passed Sarbanes-Oxley supposedly to present such future repeat. However, SOX required SEC to do something regarding enforcement ... there was even section in SOX about SEC doing something about rating-agencies. However, there is lots pointing to SEC not doing anything, not about public company fraudulent financial filings, not about rating-agencies, and/or not about Madoff. Apparently even GAO didn't believe SEC was doing anything and started doing reports of public company fraudulent financial filings, even showing uptic after SOX. In the congressional hearings into Madoff, there was testimony by the person that spent ten years unsuccessfully trying to get SEC to do something about Madoff (Madoff finally forced SEC hand when he turned himself in). A big reason for toxic CDOs sellers paying for triple-A was that it gave access to large institutional investors restricted to dealing in triple-A (went from possibly millions in the S&L crisis to $27T ... a factor of million times).
Evil Wall Street Exports Boomed With 'Fools' Born to Buy Debt
https://www.bloomberg.com/news/articles/2008-10-27/evil-wall-street-exports-boomed-with-fools-born-to-buy-debt

Triple-A rating also trumps documentation and mortgage originators could start doing no-documentation loans (and with no-documentation, there was no longer any question about document integrity)

gao.gov about public company fraudulent financial filings during the last decade:
http://www.gao.gov/products/GAO-03-395R
http://www.gao.gov/products/GAO-06-678
https://www.gao.gov/products/gao-06-1079sp

... in theory under SOX ... all the executives would be doing jail time

In the Madoff hearings, the person that had tried unsuccessfully for a decade to get SEC to do something about Madoff, was asked if new regulations were needed. He replied that while new regulations might be needed, much more important would be transparency and visibility in the market (current is anything but). (also) In the late 90s, I was asked into NSCC (before they merged with DTC) to look at improving integrity of exchange transactions. I started work on it ... but after a couple months I was told that it was suspended, the problem was that a side-effect of improving transaction integrity would have also greatly increased transparency and visibility ... which is antithesis of current wallstreet culture. Somewhat similar reference here that wallstreet had nothing to fear from SEC.
http://nypost.com/2007/03/20/cramer-reveals-a-bit-too-much/

systemic risk tends to be cascade failures somewhat like dominoes ... it was used to bail-out the hedge fund industry the end of last century ... w/o bothering to change their behavior. $27T in CDOs is more like dropping a nuke. Not only wasn't SEC doing anything ... a couple weeks ago CBS 60min had Ernst&Young, SEC, and Federal Reserve all having people onsite at Lehman ... but they weren't doing anything ... just sitting on the sidelines watching $50B being constantly shifted from one end of the field to the other end.

recent posts mentioning $27T in toxic CDOs during bubble &/or $5.2T still being carried "off-book" by four too-big-to-fail at end of 2008.
https://www.garlic.com/~lynn/2012.html#21 Zombie Banks
https://www.garlic.com/~lynn/2012.html#32 Wall Street Bonuses May Reach Lowest Level in 3 Years
https://www.garlic.com/~lynn/2012b.html#19 "Buffett Tax" and truth in numbers
https://www.garlic.com/~lynn/2012b.html#65 Why Wall Street Should Stop Whining
https://www.garlic.com/~lynn/2012b.html#95 Bank of America Fined $1 Billion for Mortgage Fraud
https://www.garlic.com/~lynn/2012c.html#30 US real-estate has lost $7T in value
https://www.garlic.com/~lynn/2012c.html#31 US real-estate has lost $7T in value
https://www.garlic.com/~lynn/2012c.html#32 US real-estate has lost $7T in value
https://www.garlic.com/~lynn/2012c.html#36 US real-estate has lost $7T in value
https://www.garlic.com/~lynn/2012c.html#37 US real-estate has lost $7T in value
https://www.garlic.com/~lynn/2012c.html#38 The Death of MERS
https://www.garlic.com/~lynn/2012c.html#45 Fannie, Freddie Charge Taxpayers For Legal Bills
https://www.garlic.com/~lynn/2012c.html#46 PC industry is heading for more change
https://www.garlic.com/~lynn/2012c.html#52 PC industry is heading for more change
https://www.garlic.com/~lynn/2012c.html#54 PC industry is heading for more change
https://www.garlic.com/~lynn/2012c.html#55 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#5 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#32 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#42 China's J-20 Stealth Fighter Is Already Doing A Whole Lot More Than Anyone Expected
https://www.garlic.com/~lynn/2012e.html#23 Are mothers naturally better at OODA because they always have the Win in mind?
https://www.garlic.com/~lynn/2012e.html#40 Who Increased the Debt?
https://www.garlic.com/~lynn/2012e.html#42 Who Increased the Debt?
https://www.garlic.com/~lynn/2012e.html#58 Word Length
https://www.garlic.com/~lynn/2012f.html#31 Rome speaks to us. Their example can inspire us to avoid their fate
https://www.garlic.com/~lynn/2012f.html#63 One maths formula and the financial crash
https://www.garlic.com/~lynn/2012f.html#66 Predator GE: We Bring Bad Things to Life
https://www.garlic.com/~lynn/2012f.html#69 Freefall: America, Free Markets, and the Sinking of the World Economy
https://www.garlic.com/~lynn/2012f.html#75 Fed Report: Mortgage Mess NOT an Inside Job
https://www.garlic.com/~lynn/2012f.html#80 The Failure of Central Planning
https://www.garlic.com/~lynn/2012f.html#87 How do you feel about the fact that India has more employees than US?

--
virtualization experience starting Jan1968, online at home since Mar1970

Adult Supervision

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 14 May, 2012
Subject: Adult Supervision
Blog: Facebook
re:
https://www.garlic.com/~lynn/2012g.html#6 Adult Supervision

Note during the economic bubble, it appears to have radically shifted ... claim that the industry tripled in size during the bubble (as percent of GDP), ny state controller report that wallstreet bonuses spiked over 400% during the economic bubble (and lots of efforts to prevent returning to pre-bubble level). Stiglitz' "Freefall: America, Free Markets, and the Sinking of the World Economy" says that the industry accounted for 40% of us corporate profits during the bubble. By the various measures, during the bubble, massive amount of the country's economy has shifted into wallstreet pockets.
https://www.amazon.com/Freefall-America-Markets-Sinking-ebook/dp/B0035YDM9E

pg188:
"We should have recognized that the outsized proportions of the financial sector -- in the years before the crisis, some 40 percent of corporate profits were in that sector -- indicated that something was wrong"

... snip ...

sort of Stiglitz version of Taibbi's "Vampire Squid"

vampire squid:
https://www.amazon.com/Griftopia-Machines-Vampire-Breaking-ebook/dp/B003F3FJS2
some also here:
http://www.rollingstone.com/politics/news/the-great-american-bubble-machine-20100405

saying a company or an industry doubled their profits can be about innovation or more efficient ... saying that 40% of all corporate profit has shifted to industry is a fundamental comment about the economy and how profits are distributed in the economy. the big thing that was "invented" in the bubble was rating agencies selling triple-A ratings when they knew they weren't worth triple-A ... and there was $27T done.

Note: in Jan 2009 I was asked to HTML'ize the Pecora hearings (30s congressional hearings into the 29crash, they had been scanned the previous fall at the boston public library), heavy internal cross-link and indexing ... as well as lots of hrefs between what happened then and what happened this time (some assumption that new congress had appetite to do something). I worked on it for a couple months and then got a call that it wouldn't be needed after all (some implication that enormous amounts of lobbying money spread around washington).

The testimony in the congressional hearings into the rating agencies .... was that the rating agencies *KNEW* they weren't triple-A (including people in the rating agencies that worked in other departments) ... but they were willing to sell the triple-A rating anyway. One commentator during the hearings made the observation that the rating agencies would likely be able to avoid federal prosecution with the threat of credit downgrade for the federal gov. Wallstreet was making enormous profits from the fees and commissions on the transactions ... and personal compensation was such that it mitigated any concern that they might have about their institution, the economy, and/or the country. At the height of the bubble there was joke on wallstreet with an analogy to musical chairs and who would still be holding toxic assets when the bubble burst.

There has been quite a bit about how complex and convoluted CDOs can be to evaluate ... but that is frequently obfuscation and misdirection. There were accounts of business people directing risk managers to fiddle the model inputs until the correct results were obtained.
http://bits.blogs.nytimes.com/2008/09/18/how-wall-streets-quants-lied-to-their-computers/

(it wasn't an issue with the models, it was straight GIGO ... garbage-in/garbage-out). early on in the crash there were then calls that risk managers needed greater autonomy in corporate structures. since then there has been an enormous amount more obfuscation and misdirection.

recent posts mentioning Stiglitz &/or Taibbi:
https://www.garlic.com/~lynn/2012.html#17 What's your favorite quote on "accountability"?
https://www.garlic.com/~lynn/2012.html#21 Zombie Banks
https://www.garlic.com/~lynn/2012.html#30 Age of Greed: The Triumph of Finance and the Decline of America, 1970 to the Present
https://www.garlic.com/~lynn/2012.html#47 Avoiding a lost decade
https://www.garlic.com/~lynn/2012b.html#43 Where are all the old tech workers?
https://www.garlic.com/~lynn/2012b.html#84 A Conversation with Peter Thiel
https://www.garlic.com/~lynn/2012c.html#2 Occupy the SEC (Securities & Exchange Commission)
https://www.garlic.com/~lynn/2012d.html#52 Goldman Exec Quits In A Scathing NYT Op-Ed About How The Firm Abuses Its Clients
https://www.garlic.com/~lynn/2012d.html#61 Why Republicans Aren't Mentioning the Real Cause of Rising Prices at the Gas Pump
https://www.garlic.com/~lynn/2012f.html#66 Predator GE: We Bring Bad Things to Life
https://www.garlic.com/~lynn/2012f.html#75 Fed Report: Mortgage Mess NOT an Inside Job
https://www.garlic.com/~lynn/2012f.html#77 Vampire Squid
https://www.garlic.com/~lynn/2012f.html#84 How do you feel about the fact that India has more employees than US?
https://www.garlic.com/~lynn/2012f.html#88 Defense acquisitions are broken and no one cares
https://www.garlic.com/~lynn/2012f.html#91 Psychology Of Fraud: Why Good People Do Bad Things

--
virtualization experience starting Jan1968, online at home since Mar1970

Adult Supervision

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 15 May, 2012
Subject: Adult Supervision
Blog: Facebook
re:
https://www.garlic.com/~lynn/2012g.html#6 Adult Supervision
https://www.garlic.com/~lynn/2012g.html#7 Adult Supervision

If rating agencies were evaluating toxic CDOs for ratings, they needed supporting documentation; however being paid to always give triple-A, documentation became superfluous. Getting triple-A on everything & documentation being superfluous, the loan originators could do no-documentation loans, also loan quality and borrowers qualifications no longer mattered ... just stuff that got in the way of writing loans as fast as possible for the largest possible value.

Then there is MERS, the robo-signing scandal and illegally fabricating documents.
http://www.veteranstoday.com/2012/02/22/the-death-of-mers/
and
http://www.rollingstone.com/politics/blogs/taibblog/a-big-change-on-the-foreclosure-front-20120128

they sign a deal for small amount (billions but trivial "cost of doing business" considering actual amounts involved) to make it go away
http://www.mybanktracker.com/bank-news/2012/02/09/26-billion-foreclosure-deal/

aka the rating agencies willing to sell triple-A ratings w/o bothering to do evaluation led to the whole genre of no-documentation loans which enormously exploded the wallstreet fees, commissions (graft & corruption) on $27T in triple-A rated toxic CDOs. Also, real-estate speculators found the no-down, no-documentation 1% interest-only payment ARMs, widely profitable; in parts of the country with 20-30% inflation, it could be 2000% ROI. The triple-A for a price" changed the mortgage industry from mortgage management business to purely transaction fees&commissions ... with several different players willing to play their part for a piece of the action.

past posts mentioning MERS and/or robo-signing
https://www.garlic.com/~lynn/2012c.html#38 The Death of MERS
https://www.garlic.com/~lynn/2012c.html#46 PC industry is heading for more change
https://www.garlic.com/~lynn/2012c.html#49 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#10 PC industry is heading for more change

--
virtualization experience starting Jan1968, online at home since Mar1970

JPM LOSES $2 BILLION USD!

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 15 May, 2012
Subject: JPM LOSES $2 BILLION USD!
Blog: Financial Crime Risk, Fraud and Security
JPM LOSES $2 BILLION USD!
http://online.wsj.com/article/BT-CO-20120511-710858.html

My view of Volcker was attempt to re-institute some of Glass-Steagall ... that tried to keep safety&soundness of regulated, insured deposits separated from risky side-effects of investment banking ... that investment banking loses $2B ... and takes down the company it is just one of the risks they take (but try and limit the effect unbridled risk taking can have on regulated insured deposits).

However, "Confidence Men", pg430:
But they were fighting on too many fronts. Carl Levin of Michigan and Jeff Merkley of Oregon had discovered that Dodd had discreetly gutted the Volcker Rule, and the two set to work trying to counteract Dodd's efforts. The Merkley-Levin Amendment articulated Volcker's idea fully--and wrote it as law. No regulatory backsliding, once everything settled down.

... snip ...

longer winded discussion about Dodd, Volcker rule, etc
https://www.garlic.com/~lynn/2012.html#72 Chris Dodd's SOPA crusading

Jamie's Cryin: Dimon, J.P. Morgan Chase Lose $2 Billion
http://www.rollingstone.com/politics/blogs/taibblog/jamies-cryin-dimon-j-p-morgan-chase-lose-2-billion-20120511

One could suggest that repeal Glass-Steagall had a number of effects ... including aggregation of businesses into too-big-to-fail ... as well as subjecting safety and soundness of insured deposits to the risky operations of investment banking. More recent references is that the businesses are so large that it is impossible for them to be not involved in "insider information" operations. A decade ago there was an industry publication that had thousands of measures comparing the avg. of the largest regional banks against the national banks ... with regional bank avg. coming out slightly more profitable than the national averages (further reducing justification for the too-big-to-fail to top executive compensation proportional to size of the institution).

Summer of 2010 there were a number of articles about drug cartels using "no-documentation" mortgages for money laundering ... and then news that the four too-big-to-fail were involved ... prompting references to too-big-to-jail ... with the government leaning over backwards to keep them in business, the government wasn't about to let little things like money laundering send them to jail.

current round:

Relax! They've Got It Covered; Why Jamie Dimon's $2 Billion Gambling Loss Will NOT Speed Financial Reform
http://www.counterpunch.org/2012/05/15/why-jamie-dimons-2-billion-gambling-loss-will-not-speed-financial-reform/

the above includes this reference:
Back in 1986, Dimon was the bright young protege of "Sandy" Weill, when he was forced out of American Express in a coup de requin. Master and servant made their way to Baltimore, Maryland, where Weill acquired a storefront moneylending firm called Commercial Credit.

... snip ...

Weill was major force behind repeal of Glass-Steagall. Reference in article to Commercial Credit: "this is the loansharking business"

misc. past posts referencing too-big-to-jail:
https://www.garlic.com/~lynn/2010m.html#24 Little-Noted, Prepaid Rules Would Cover Non-Banks As Wells As Banks
https://www.garlic.com/~lynn/2010q.html#58 Programmer Charged with thieft (maybe off topic)
https://www.garlic.com/~lynn/2011.html#50 What do you think about fraud prevention in the governments?
https://www.garlic.com/~lynn/2011f.html#52 Are Americans serious about dealing with money laundering and the drug cartels?
https://www.garlic.com/~lynn/2011n.html#49 The men who crashed the world
https://www.garlic.com/~lynn/2012e.html#16 Wonder if they know how Boydian they are?
https://www.garlic.com/~lynn/2012e.html#35 The Dallas Fed Is Calling For The Immediate Breakup Of Large Banks
https://www.garlic.com/~lynn/2012e.html#37 The $30 billion Social Security hack
https://www.garlic.com/~lynn/2012f.html#88 Defense acquisitions are broken and no one cares

--
virtualization experience starting Jan1968, online at home since Mar1970

Accidentally Released - and Incredibly Embarrassing - Documents Show How Goldman et al Engaged in 'Naked Short Selling'

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 16 May, 2012
Subject: Accidentally Released - and Incredibly Embarrassing - Documents Show How Goldman et al Engaged in 'Naked Short Selling'
Blog: Facebook
also Google+
https://plus.google.com/u/0/102794881687002297268/posts/JUA1PeHBh6F

Accidentally Released - and Incredibly Embarrassing - Documents Show How Goldman et al Engaged in 'Naked Short Selling'
http://www.rollingstone.com/politics/blogs/taibblog/accidentally-released-and-incredibly-embarrassing-documents-show-how-goldman-et-al-engaged-in-naked-short-selling-20120515

from above:
Now, however, through the magic of this unredacted document, the public will be able to see for itself what the banks' attitudes are not just toward the "mythical" practice of naked short selling (hint: they volubly confess to the activity, in writing), but toward regulations and laws in general.

... snip ...

Short-selling litigation; An enlightening mistake
http://www.economist.com/node/21555472
Goldman, Merrill E-Mails Show Naked Shorting, Filing Says
http://www.bloomberg.com/news/2012-05-15/goldman-merrill-e-mails-show-naked-shorting-filing-says.html

reference that such things go on all the time, but wallstreet has little to fear from SEC:
http://nypost.com/2007/03/20/cramer-reveals-a-bit-too-much/

DTCC wiki used to have section that DTCC transactions records would be able to demonstrate illegal naked short ... gone now but lives on at wayback machine:
https://web.archive.org/web/20080728143102/https://en.wikipedia.org/wiki/Depository_Trust_&_Clearing_Corporation

Both DTCC entries mention "Dodd" would consider holding hearings ... but none actually were held. Note this from "Confiendece Men", pg430:
But they were fighting on too many fronts. Carl Levin of Michigan and Jeff Merkley of Oregon had discovered that Dodd had discreetly gutted the Volcker Rule, and the two set to work trying to counteract Dodd's efforts. The Merkley-Levin Amendment articulated Volcker's idea fully--and wrote it as law. No regulatory backsliding, once everything settled down.

... snip ...

misc. past posts mentioning "naked short":
https://www.garlic.com/~lynn/2008k.html#1 dollar coins
https://www.garlic.com/~lynn/2008k.html#25 IBM's 2Q2008 Earnings
https://www.garlic.com/~lynn/2008n.html#23 Michigan industry
https://www.garlic.com/~lynn/2008n.html#25 Blinkylights
https://www.garlic.com/~lynn/2008n.html#26 Blinkylights
https://www.garlic.com/~lynn/2008n.html#28 Blinkylights
https://www.garlic.com/~lynn/2008n.html#31 Blinkylights
https://www.garlic.com/~lynn/2008n.html#101 Blinkylights
https://www.garlic.com/~lynn/2008o.html#0 Blinkylights
https://www.garlic.com/~lynn/2008o.html#1 illegal naked short selling
https://www.garlic.com/~lynn/2008q.html#50 Obama, ACORN, subprimes (Re: Spiders)
https://www.garlic.com/~lynn/2008s.html#63 Garbage in, garbage out trampled by Moore's law
https://www.garlic.com/~lynn/2009c.html#67 How to defeat new telemarketing tactic
https://www.garlic.com/~lynn/2009d.html#75 Whistleblowing and reporting fraud
https://www.garlic.com/~lynn/2009e.html#13 Should we fear and hate derivatives?
https://www.garlic.com/~lynn/2009s.html#47 Audits VII: the future of the Audit is in your hands
https://www.garlic.com/~lynn/2010c.html#33 Happy DEC-10 Day
https://www.garlic.com/~lynn/2010h.html#41 Profiling of fraudsters
https://www.garlic.com/~lynn/2010m.html#62 Dodd-Frank Act Makes CEO-Worker Pay Gap Subject to Disclosure
https://www.garlic.com/~lynn/2010p.html#43 WikiLeaks' Wall Street Bombshell
https://www.garlic.com/~lynn/2010p.html#48 WikiLeaks' Wall Street Bombshell
https://www.garlic.com/~lynn/2010p.html#63 TCM's Moguls documentary series
https://www.garlic.com/~lynn/2010q.html#36 Programmer Charged with thieft (maybe off topic)
https://www.garlic.com/~lynn/2010q.html#44 Programmer Charged with thieft (maybe off topic)
https://www.garlic.com/~lynn/2011d.html#26 The first personal computer (PC)
https://www.garlic.com/~lynn/2011e.html#39 Back to architecture: Analyzing NYSE data
https://www.garlic.com/~lynn/2011f.html#35 At least two decades back, some gurus predicted that mainframes would disappear
https://www.garlic.com/~lynn/2011f.html#52 Are Americans serious about dealing with money laundering and the drug cartels?
https://www.garlic.com/~lynn/2011j.html#11 Innovation and iconoclasm
https://www.garlic.com/~lynn/2011j.html#38 Advice from Richard P. Feynman
https://www.garlic.com/~lynn/2011k.html#60 50th anniversary of BASIC, COBOL?
https://www.garlic.com/~lynn/2011l.html#21 HOLLOW STATES and a CRISIS OF CAPITALISM
https://www.garlic.com/~lynn/2011o.html#39 Civilization, doomed?
https://www.garlic.com/~lynn/2011p.html#30 21st Century Management approach?
https://www.garlic.com/~lynn/2012.html#5 We are on the brink of a historic decision [referring to defence cuts]
https://www.garlic.com/~lynn/2012.html#87 The PC industry is heading for collapse
https://www.garlic.com/~lynn/2012b.html#44 What's the most interesting thing you do in your non-work life?
https://www.garlic.com/~lynn/2012c.html#13 Study links ultrafast machine trading with risk of crash
https://www.garlic.com/~lynn/2012e.html#41 Why Are the Fed and SEC Keeping Wall Street's Secrets?

--
virtualization experience starting Jan1968, online at home since Mar1970

There's Not an App for That: When Will Our Smartphones Be Recongized as Valid Forms of ID?

From: lynn@garlic.com (Lynn Wheeler)
Date: 16 May, 2012
Subject: There's Not an App for That: When Will Our Smartphones Be Recongized as Valid Forms of ID?
Blog: Facebook
There's Not an App for That: When Will Our Smartphones Be Recongized as Valid Forms of ID?
http://gizmodo.com/5910273/how-my-iphone-failed-to-get-me-drunk-this-weekend

I got a patent on that back in the late 90s ... some recent topic drift on the subject here:
https://www.garlic.com/~lynn/2012g.html#3

I gave a talk on the subject at ISI fall 1998, had the internet standards editors group and the USC computer science graduate stutdents ... related post from dec98:
https://www.garlic.com/~lynn/aadsm2.htm#straw

all "assigned":
https://www.garlic.com/~lynn/aadssummary.htm

Corporate patent plan payed $6/patents, we were working with boutique patent attorney firm ... and had 50 patents drafted and they were saying it would be 100 or more when we finished. Some executive looked at total cost of filing that many patents (both US and international) and directed all the claims be repackaged as 9 patents. Later the patent office complained about patents with humongous number of claims (filing fee not even covering cost to read all the claims) and directed claims be refiled as minimum of 20-30 patents. Corporate patent plan didn't pay for refiled patents.

--
virtualization experience starting Jan1968, online at home since Mar1970

JPM LOSES $2 BILLION USD!

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 16 May, 2012
Subject: JPM LOSES $2 BILLION USD!
Blog: Financial Crime Risk, Fraud and Security
re:
https://www.garlic.com/~lynn/2012g.html#9 JPM LOSES $2 BILLION USD!

recent item about too-big-to-fail not needing to worry about regulations and enforcement

Accidentally Released - and Incredibly Embarrassing - Documents Show How Goldman et al Engaged in 'Naked Short Selling'
http://www.rollingstone.com/politics/blogs/taibblog/accidentally-released-and-incredibly-embarrassing-documents-show-how-goldman-et-al-engaged-in-naked-short-selling-20120515
Short-selling litigation; An enlightening mistake
http://www.economist.com/node/21555472
Goldman, Merrill E-Mails Show Naked Shorting, Filing Says
http://www.bloomberg.com/news/2012-05-15/goldman-merrill-e-mails-show-naked-shorting-filing-says.html

similar reference from a few years ago:
http://nypost.com/2007/03/20/cramer-reveals-a-bit-too-much/

from baseline:

Investigating JPMorgan Chase
http://economix.blogs.nytimes.com/2012/05/17/investigating-jpmorgan-chase/?src=tp

from above:
In the end, we may well come to the same conclusion as Elizabeth Warren ... who has brilliantly seized the political moment and put her opponent for the Senate seat from Massachusetts, the Republican incumbent Scott Brown, on the defensive.

Ms. Warren is calling for the re-imposition of Glass-Steagall ... separating commercial from investment banking. Mr. Fine is already pushing in the same direction. This position should be appealing across the political spectrum.


... snip ...

and

President Obama's Wall Street problem
http://www.politico.com/news/stories/0512/76259.html
How Wall Street Killed Financial Reform; It's bad enough that the banks strangled the Dodd-Frank law. Even worse is the way they did it - with a big assist from Congress and the White House
http://www.rollingstone.com/politics/news/how-wall-street-killed-financial-reform-20120510
Are JPMorgan's Losses A Canary in a Coal Mine?
http://billmoyers.com/2012/05/16/audio-bill-moyers-and-simon-johnson-discuss-jpmorgan-chases-2-billion-loss/

some more detail on the trade (bets)

JPMorgan not so dumb
http://www.atimes.com/atimes/Global_Economy/NE18Dj03.html

recent posts mentioning Glass-Steagall:
https://www.garlic.com/~lynn/2012.html#0 Revolution Through Banking?
https://www.garlic.com/~lynn/2012.html#25 You may ask yourself, well, how did I get here?
https://www.garlic.com/~lynn/2012.html#70 Regulatory Agency logo
https://www.garlic.com/~lynn/2012b.html#16 Interview of Mr. John Reed regarding banking fixing the game
https://www.garlic.com/~lynn/2012b.html#65 Why Wall Street Should Stop Whining
https://www.garlic.com/~lynn/2012b.html#95 Bank of America Fined $1 Billion for Mortgage Fraud
https://www.garlic.com/~lynn/2012c.html#0 New theory of moral behavior may explain recent ethical lapses in banking industry
https://www.garlic.com/~lynn/2012c.html#13 Study links ultrafast machine trading with risk of crash
https://www.garlic.com/~lynn/2012c.html#31 US real-estate has lost $7T in value
https://www.garlic.com/~lynn/2012c.html#32 US real-estate has lost $7T in value
https://www.garlic.com/~lynn/2012c.html#37 US real-estate has lost $7T in value
https://www.garlic.com/~lynn/2012c.html#39 Greek knife to Wall Street
https://www.garlic.com/~lynn/2012c.html#44 New Citigroup Looks Too Much Like the Old One
https://www.garlic.com/~lynn/2012c.html#52 PC industry is heading for more change
https://www.garlic.com/~lynn/2012c.html#54 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#5 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#32 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#68 Memory versus processor speed
https://www.garlic.com/~lynn/2012d.html#69 Memory versus processor speed
https://www.garlic.com/~lynn/2012e.html#1 The Dallas Fed Is Calling For The Immediate Breakup Of Large Banks
https://www.garlic.com/~lynn/2012e.html#16 Wonder if they know how Boydian they are?
https://www.garlic.com/~lynn/2012e.html#30 Senators Who Voted Against Ending Big Oil Tax Breaks Received Millions From Big Oil
https://www.garlic.com/~lynn/2012e.html#41 Why Are the Fed and SEC Keeping Wall Street's Secrets?
https://www.garlic.com/~lynn/2012f.html#31 Rome speaks to us. Their example can inspire us to avoid their fate
https://www.garlic.com/~lynn/2012f.html#71 When Mobile Telecommunications Routes Become Banks
https://www.garlic.com/~lynn/2012f.html#75 Fed Report: Mortgage Mess NOT an Inside Job

--
virtualization experience starting Jan1968, online at home since Mar1970

Organizational Hierarchy; Adapting Old Structures to New Challenges

Refed: **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 17 May, 2012
Subject: Organizational Hierarchy; Adapting Old Structures to New Challenges
Blog: Facebook
Organizational Hierarchy; Adapting Old Structures to New Challenges
http://orgnet.com/orgchart.html

This was discussed in some detail in an online computer conferencing in the early 80s (providing direct peer-to-peer communication). One of the roadblocks was those in middle management securing their positions by controlling information interface for their organizations ... over the past three decades observed lots of instances where those middle management offered huge resistance to more efficient organization operation (feeling their position/role controlling information was threatened). Boyd would talk about this in his briefing Organic Design For Command And Control (as well as pushing decisions as low as possible in the organization). misc. past posts & URLs from around the web referencing Boyd and/or OODA-loops
https://www.garlic.com/~lynn/subboyd.html

... aka their career was bound to being an "information gateway"

I was blamed for online computer conferencing on the internal network (larger than arpanet/internet from just about the beginning until late '85 or early '86) in the late 70s and early 80s. The early 80s event was specifically referred to as "Tandem Memos" ... folklore was that when the executive committee (chairman, ceo, pres, etc) was informed of online computer conferencing (and the internal network), 5of6 wanted to fire me (there was write-up on the event nov81 datamation). Some past posts mentioning internal network
https://www.garlic.com/~lynn/subnetwork.html#internalnet

The corporation had an "investigation" of the event afterwards and Hiltz & Turoff ("Network Nation", EIES) brought in as consultants.

There was also a researcher that was paid to study how I communicated; sit in the back of my office for nine months taking notes on face-to-face & telephone conversations, went with me to meetings, got copies of all my incoming & outgoing email as well as logs of all instant messages. The result was research report, and material used for Stanford phd thesis (joint between language and computer AI) as well as some number of papers and books. some past posts
https://www.garlic.com/~lynn/subnetwork.html#cmc

... note regarding "information gateways" ... also "information tollbooths".

Also, in the early 80s, I had sponsored Boyd's briefings at IBM ... first time he was still in the process of developing Organic Design For Command And Control ... so only briefed Patterns Of Conflict ... 2nd briefing had Patterns of Conflict as well as newly minted Organic Design For Command And Control

--
virtualization experience starting Jan1968, online at home since Mar1970

Psychology Of Fraud: Why Good People Do Bad Things

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 17 May, 2012
Subject: Psychology Of Fraud: Why Good People Do Bad Things
Blog: Financial Crime Risk, Fraud and Security
re:
https://www.garlic.com/~lynn/2012f.html#74 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012f.html#91 Psychology Of Fraud: Why Good People Do Bad Things

Nearly forever insider fraud has dominated. In the past, there has been work on multi-person transactions as countermeasure to insider fraud. Then came collusion as a response to multi-person transactions ... and then increasingly sophisticated anti-collusion measures. The rise of the internet has frequently been used to obfuscate and misdirect lots of fraudulent and cover insider tracks.

recent from today, whole organizations rife with illegal activity with little or no expectations of being held accountable:

Accidentally Released - and Incredibly Embarrassing - Documents Show How Goldman et al Engaged in 'Naked Short Selling'
http://www.rollingstone.com/politics/blogs/taibblog/accidentally-released-and-incredibly-embarrassing-documents-show-how-goldman-et-al-engaged-in-naked-short-selling-20120515
Short-selling litigation; An enlightening mistake
http://www.economist.com/node/21555472
Goldman, Merrill E-Mails Show Naked Shorting, Filing Says
http://www.bloomberg.com/news/2012-05-15/goldman-merrill-e-mails-show-naked-shorting-filing-says.html

There was CEO European conference in 2004 with presidents of various european exchanges, the main theme was SOX was starting to pollute Europe. I gave a talk about audits needing to find inconsistencies. With computers, any set of books could be programmed to be consistent ... so that auditing needed independent sources to cross-check ... however, if all sources were from the same dataprocessing infrastructure ... they could be made consistent ... negating any level of auditing.

Of course, as per GAO reports referenced upthread ... SOX also assumed auditors and SEC to be doing something (in theory under SOX all the related executives from GAO reports, would be doing jail time).

A couple weeks ago, CBS 60mins had that auditors, SEC, and Federal Reserve on site at Lehman ... however, they apparently were just sitting on the sidelines just watching all the various activities going on.

Also referenced upthread ... Stiglitz reference to the history rewriting that has been going on.

other recent posts on the related subjects:
https://www.garlic.com/~lynn/2012.html#1 The war on terabytes
https://www.garlic.com/~lynn/2012.html#5 We are on the brink of a historic decision [referring to defence cuts]
https://www.garlic.com/~lynn/2012.html#18 SEC v. Citigroup, How to Avoid (Greater) Disaster
https://www.garlic.com/~lynn/2012.html#26 What's your favorite quote on "accountability"?
https://www.garlic.com/~lynn/2012.html#35 Israel vows to hit back after credit cards hacked
https://www.garlic.com/~lynn/2012.html#48 Fed's image tarnished by newly released documents
https://www.garlic.com/~lynn/2012.html#65 Reject gmail
https://www.garlic.com/~lynn/2012.html#70 Regulatory Agency logo
https://www.garlic.com/~lynn/2012.html#87 The PC industry is heading for collapse
https://www.garlic.com/~lynn/2012.html#91 Has anyone successfully migrated off mainframes?
https://www.garlic.com/~lynn/2012.html#94 Bankruptcy a reprieve for some companies
https://www.garlic.com/~lynn/2012b.html#3 Why Threat Modelling fails in practice
https://www.garlic.com/~lynn/2012b.html#19 "Buffett Tax" and truth in numbers
https://www.garlic.com/~lynn/2012b.html#44 What's the most interesting thing you do in your non-work life?
https://www.garlic.com/~lynn/2012b.html#52 Banking malware a growing threat, as new variant of Zeus is detected
https://www.garlic.com/~lynn/2012b.html#53 Can America Lead the World's Fight Against Corruption?
https://www.garlic.com/~lynn/2012b.html#54 The New Age Bounty Hunger -- Showdown at the SEC Corral
https://www.garlic.com/~lynn/2012b.html#55 Mythbusters Banned From Discussing RFID By Visa And Mastercard
https://www.garlic.com/~lynn/2012b.html#61 Banking malware a growing threat, as new variant of Zeus is detected
https://www.garlic.com/~lynn/2012b.html#71 Password shortcomings
https://www.garlic.com/~lynn/2012b.html#78 The PC industry is heading for collapse
https://www.garlic.com/~lynn/2012b.html#82 Mathematics < Integrity = Financial Fraud
https://www.garlic.com/~lynn/2012b.html#87 The Benefit and The Burden
https://www.garlic.com/~lynn/2012b.html#94 public key, encryption and trust
https://www.garlic.com/~lynn/2012b.html#95 Bank of America Fined $1 Billion for Mortgage Fraud
https://www.garlic.com/~lynn/2012b.html#96 Infographic: Online payment security
https://www.garlic.com/~lynn/2012b.html#99 New theory of moral behavior may explain recent ethical lapses in banking industry
https://www.garlic.com/~lynn/2012c.html#0 New theory of moral behavior may explain recent ethical lapses in banking industry
https://www.garlic.com/~lynn/2012c.html#3 zSeries Manpower Sizing
https://www.garlic.com/~lynn/2012c.html#4 Bank of America Fined $1 Billion for Mortgage Fraud
https://www.garlic.com/~lynn/2012c.html#6 The 15 Worst Data Security Breaches of the 21st Century
https://www.garlic.com/~lynn/2012c.html#11 The 15 Worst Data Security Breaches of the 21st Century
https://www.garlic.com/~lynn/2012c.html#13 Study links ultrafast machine trading with risk of crash
https://www.garlic.com/~lynn/2012c.html#21 Study links ultrafast trading with risk of crash
https://www.garlic.com/~lynn/2012c.html#31 US real-estate has lost $7T in value
https://www.garlic.com/~lynn/2012c.html#36 US real-estate has lost $7T in value
https://www.garlic.com/~lynn/2012c.html#37 US real-estate has lost $7T in value
https://www.garlic.com/~lynn/2012c.html#45 Fannie, Freddie Charge Taxpayers For Legal Bills
https://www.garlic.com/~lynn/2012c.html#46 PC industry is heading for more change
https://www.garlic.com/~lynn/2012c.html#48 PC industry is heading for more change
https://www.garlic.com/~lynn/2012c.html#54 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#5 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#8 Time to pull the PIN!
https://www.garlic.com/~lynn/2012d.html#10 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#12 Gordon Gekko Says
https://www.garlic.com/~lynn/2012d.html#14 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#16 IBM cuts more than 1,000 U.S. Workers
https://www.garlic.com/~lynn/2012d.html#26 Can SSL Certificate Checking System Be Saved?
https://www.garlic.com/~lynn/2012d.html#34 Gordon Gekko Says
https://www.garlic.com/~lynn/2012d.html#39 Fannie and Freddie must go - here's how
https://www.garlic.com/~lynn/2012d.html#49 Do you know where all your sensitive data is located?
https://www.garlic.com/~lynn/2012d.html#52 Goldman Exec Quits In A Scathing NYT Op-Ed About How The Firm Abuses Its Clients
https://www.garlic.com/~lynn/2012d.html#55 Do you know where all your sensitive data is located?
https://www.garlic.com/~lynn/2012d.html#62 Gordon Gekko Says
https://www.garlic.com/~lynn/2012d.html#63 Fans of Threat Modelling reach for their guns ... but can they afford the bullets?
https://www.garlic.com/~lynn/2012d.html#68 Memory versus processor speed
https://www.garlic.com/~lynn/2012e.html#16 Wonder if they know how Boydian they are?
https://www.garlic.com/~lynn/2012e.html#17 Data theft: Hacktivists 'steal more than criminals'
https://www.garlic.com/~lynn/2012e.html#30 Senators Who Voted Against Ending Big Oil Tax Breaks Received Millions From Big Oil
https://www.garlic.com/~lynn/2012e.html#31 PC industry is heading for more change
https://www.garlic.com/~lynn/2012e.html#32 Visa, MasterCard warn of 'massive' security breach
https://www.garlic.com/~lynn/2012e.html#37 The $30 billion Social Security hack
https://www.garlic.com/~lynn/2012e.html#41 Why Are the Fed and SEC Keeping Wall Street's Secrets?
https://www.garlic.com/~lynn/2012e.html#53 GOLD STANDARD GOOD OR BAD?
https://www.garlic.com/~lynn/2012e.html#57 speculation
https://www.garlic.com/~lynn/2012e.html#79 What's the takeaway on Audit?
https://www.garlic.com/~lynn/2012e.html#82 Fighting Cyber Crime with Transparency
https://www.garlic.com/~lynn/2012f.html#13 The White House and Mortgage Fraud: So Far It's All Talk, No Action
https://www.garlic.com/~lynn/2012f.html#25 Time to competency for new software language?
https://www.garlic.com/~lynn/2012f.html#31 Rome speaks to us. Their example can inspire us to avoid their fate
https://www.garlic.com/~lynn/2012f.html#33 The case against Lehman Brothers
https://www.garlic.com/~lynn/2012f.html#38 UK firms need to 'fess up to security boobs
https://www.garlic.com/~lynn/2012f.html#47 Cartons of Punch Cards
https://www.garlic.com/~lynn/2012f.html#66 Predator GE: We Bring Bad Things to Life
https://www.garlic.com/~lynn/2012f.html#75 Fed Report: Mortgage Mess NOT an Inside Job
https://www.garlic.com/~lynn/2012f.html#80 The Failure of Central Planning
https://www.garlic.com/~lynn/2012f.html#84 How do you feel about the fact that India has more employees than US?
https://www.garlic.com/~lynn/2012f.html#87 How do you feel about the fact that India has more employees than US?
https://www.garlic.com/~lynn/2012g.html#3 Quitting Top IBM Salespeople Say They Are Leaving In Droves
https://www.garlic.com/~lynn/2012g.html#6 Adult Supervision
https://www.garlic.com/~lynn/2012g.html#8 Adult Supervision
https://www.garlic.com/~lynn/2012g.html#9 JPM LOSES $2 BILLION USD!
https://www.garlic.com/~lynn/2012g.html#10 Accidentally Released - and Incredibly Embarrassing - Documents Show How Goldman et al Engaged in 'Naked Short Selling'
https://www.garlic.com/~lynn/2012g.html#12 JPM LOSES $2 BILLION USD!

--
virtualization experience starting Jan1968, online at home since Mar1970

Stars for hire

From: lynn@garlic.com (Lynn Wheeler)
Date: 17 May, 2012
Subject: Stars for hire
Blog: Facebook
Stars for hire
http://elpdefensenews.blogspot.com/2012/05/stars-for-hire.html

references:

From the Pentagon to the private sector; In large numbers, and with few rules, retiring generals are taking lucrative defense-firm jobs
http://www.boston.com/news/nation/washington/articles/2010/12/26/defense_firms_lure_retired_generals/

Look Out, 4-Star General Coming Through ... the Revolving Door
http://www.battleland.blogs.time.com//2012/02/02/look-out-4-star-general-coming-through-the-revolving-door/

--
virtualization experience starting Jan1968, online at home since Mar1970

Psychology Of Fraud: Why Good People Do Bad Things

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 18 May, 2012
Subject: Psychology Of Fraud: Why Good People Do Bad Things
Blog: Financial Crime Risk, Fraud and Security
re:
https://www.garlic.com/~lynn/2012f.html#74 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012f.html#91 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012g.html#14 Psychology Of Fraud: Why Good People Do Bad Things

There is lots of discussion recently regarding Thinking Fast & Slow in (linkedin) Boyd group ... especially with respect to Boyd's OODA-loop (also being used for LEO training). In the 80s, I use to sponsor Boyd's briefings at IBM.

The counter is studies about financial industry attracts a large percentage of sociopaths and amoral people ... who seem to have inability for considering consequences. really long winded recent post in mailing list
https://www.garlic.com/~lynn/2012e.html#57

with this reference about wallstreet

Thinking, Fast & Slow (Daniel Kahneman, another nobel prize winner in economics)
https://www.amazon.com/Thinking-Fast-and-Slow-ebook/dp/B00555X8OA

pg. 212:
Since then, my questions about the stock market have hardened into a larger puzzle: a major industry appears to be built largely on an illusion of skill. Billions of shares are traded every day, with many people buying each stock and others selling it to them

... snip ...

aka that much of wallstreet is pure illusion & fabrication ... which goes along with Taibbi references to much of it is giant con.

There is quite a few more references to JPM trade in the JPM discussion in this linkedin group.

Note in Jan2009, I was asked to HTML'ize the Percoa hearings (congressional hearings into crash of 29, resulted in Glass-Steagall; had been scanned the fall before at Boston Public Library) ... with lots of internal HREF cross-references and links as well as lots of URLs between what happened this time and what happened then (some expectation that new congress would have appetite to do something). After working on it for a couple months ... got a call saying it wouldn't be needed after all (implication that wallstreet was pouring massive amounts of money into washington).

From "Confidence Men: Wall Street, Washington, and the Education of a President"
https://www.amazon.com/Confidence-Men-Washington-Education-ebook/dp/B0089LOKKS/

it mentions that Obama's economic "A-team" was instrumental in getting him elected ... but they were planning on holding accountable those responsible for the economic mess ... and Obama appoints the "B-team" instead ... many of who had participated in the economic mess.

also from "Confidence Men" regarding Volcker rule (in Dodd-Frank):
But they were fighting on too many fronts. Carl Levin of Michigan and Jeff Merkley of Oregon had discovered that Dodd had discreetly gutted the Volcker Rule

... snip ...

also x-over from JPM discussion, reference to Dimon was protege of Weill during 80s&90s
http://www.counterpunch.org/2012/05/15/why-jamie-dimons-2-billion-gambling-loss-will-not-speed-financial-reform/

from above:
Back in 1986, Dimon was the bright young protege of "Sandy" Weill, when he was forced out of American Express in a coup de requin. Master and servant made their way to Baltimore, Maryland, where Weill acquired a storefront moneylending firm called Commercial Credit.

... snip ...

also has reference to Commerical Credit being loansharking operation.

In the 90s, Weill was in violation of Glass-Steagall with the takeover of Citi ... but Greenspan gave him exemption while Weill worked on getting Glass-Steagall repealed. Age of Greed goes into some more detail
https://www.amazon.com/Age-Greed-Triumph-Finance-ebook/dp/B004DEPF6I/

other past posts mentioning thinking, fast & slow
https://www.garlic.com/~lynn/2011p.html#138 Thinking, Fast & Slow
https://www.garlic.com/~lynn/2011p.html#143 Wall Street's Big Lie
https://www.garlic.com/~lynn/2011p.html#147 The Myth of Work-Life Balance
https://www.garlic.com/~lynn/2012.html#1 The war on terabytes
https://www.garlic.com/~lynn/2012.html#3 We are on the brink of a historic decision [referring to defence cuts]
https://www.garlic.com/~lynn/2012.html#30 Age of Greed: The Triumph of Finance and the Decline of America, 1970 to the Present
https://www.garlic.com/~lynn/2012b.html#29 The speeds of thought, complexities of problems
https://www.garlic.com/~lynn/2012b.html#35 Entropy and #SocialMedia
https://www.garlic.com/~lynn/2012b.html#44 What's the most interesting thing you do in your non-work life?
https://www.garlic.com/~lynn/2012b.html#59 Original Thinking Is Hard, Where Good Ideas Come From
https://www.garlic.com/~lynn/2012c.html#13 Study links ultrafast machine trading with risk of crash

--
virtualization experience starting Jan1968, online at home since Mar1970

Co-existance of z/OS and z/VM on same DASD farm

Refed: **, - **, - **, - **, - **
From: lynn@GARLIC.COM (Anne & Lynn Wheeler)
Subject: Re: Co-existance of z/OS and z/VM on same DASD farm
Newsgroups: bit.listserv.ibm-main
Date: 18 May 2012 11:23:00 -0700
VM had dasd read/only for volser (vol1 record) to identify each mounted disk. VM r/w activity was limited to vm page formated disks.

CMS running in virtual machine had support for cms filesystems and some primitive support for real formated OS & DOS disks. regarding incorrently rewriting vtoc ... there is some possibility it might have happened if somebody had attached/linked the real disks to cms in a virtual machine (in r/w mode).

In the mid-70s, one of the people in the vm370/cms development group significantly rewrote and developed full function OS r/w filesystem (real os vtoc, pds directory, etc.) function in CMS (joke that the <100k bytes was more efficient os/360 similiation than the 8+mbytes that had been done in MVS for os/360 simulation). however this was approx. the period when FS effort was imploding and there was mad rush to get products back into the 370 pipelines (during FS effort, 370 activity was being suspended and/or killed off). misc. past posts mentioning Future System effort (that was going to completely replace 360/370)
https://www.garlic.com/~lynn/submain.html#futuresys

As part of reconsituting 370, (303x was kicked off in parallel with 370/xa) and the head of POK managed to convince corporate to kill off vm370 product, shutdown the development group and move all the people to POK ... or otherwise they wouldn't be able to meet the mvs/xa ship schedule.

somehow the vm370 development group was warned ahead of time and some of the people managed to escape being moved to POK (there was joke about head of POK was major contributor to DEC vax/vms). in the killing off of the vm370 product and shutdown of the group ... before the full function OS filesystem support shipped ... and it all just disappeared.

Eventually, Endicott managed to save the vm370 product mission, but they had to reconstitute a development group from scratch.

--
virtualization experience starting Jan1968, online at home since Mar1970

VM Workshop 2012

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 18 May, 2012
Subject: VM Workshop 2012
Blog: z/VM
re:
http://lnkd.in/Emfz8Z

VM Workshop 2012
http://www.vmworkshop.org/

Just got email lobbying for me to attend. Its around 10hr drive. I haven't decide yet.

I just registered for workshop ... I'm planning 81 and then 64 ... I recently drove the 81 part to far SW Virginia where lots of ancestors originated. I had to decide between the workshop and a dinner for oldtime IBMers north of NYC.

old email from long ago and far away:



Date: FRI, 02/20/87 10:21:36 PST
From: wheeler

re: friday; ... as the old saying goes, "vote early and often"

btw, next week starts the west coast vm computer meetings, VM workshop
is being held @ Asilomar, followed by SHARE in SanFran, followed by
the IBM VMITE, followed by GUIDE in LA.

Following is the tentative wrkshp schedule ... I'm giving two talks,
one on history of VM Performance (previously given at SEAS and easily
ran 3-4 hrs). Network Research (previously given at Baybunch and
numerous other places) ... I may also be participating in BOFs on
debugging (DUMPRX) and spooling (HSDTSFS).

<<< MEMO VMWKABSA - 55 lines, 1 append(s) >>>

Append on 02/18/87 at 15:44 by Dave Gomberg, UC SAN FRANCISCO, 415-476-4525:

Well, at long last here is the agenda. Tue and Wed are self-explanatory,
Xhu is a borrowing of Knuth's freedom with pronunciation of the english
letter X (when you find someone who actually sets TEX in Greek font, not
english, let me know). I have decreed that Xh is pronounced just like Th
(as in Thursday). A and P refer to AM and PM, X is evening sessions.
The digits refer to order, Wed AM will probably have parallel sessions.
Please let me know if you find any problems.

Jim Bergsten TueX The Computer Software Business
KOLx WedX Burnout roundtable
Mike Armstrong XhuX What SHARE can do for VM Users & vv

Dave Gomberg Tue 1 1:15 Opening
Gabe Goldberg TueA1 :30 A new way to manage DCSS installation and testing
Bob Bolch TueA2 :30 CMS-based Support for the 7171
Roger Deschner TueA3 1:15 Capacity planning and statistical data analysis
Lynn Wheeler TueP1 1:30 VM History
Arty Ecock TueP2 :30 CMS File System Tutorial
Rich Greenberg TueP3 :30 VM Enhancements to support the Xerox 4060
Richard Peters TueP4 1:00 Using a worker to control performance variables
Jim Bur TueP5 :60 VMBATCH experiences
Joe Farrachio WedA :35 CP mods: TIMEZONE, MULTI-NUC
Sean McGrath WedA :15 PMA Without Pain Using Non-Full Pack Minidisks
Tom Matteson WedA :20 Automated System ID Password Maintenance under RACF
Tom Foth WedA 1:00 Removing CP bottlenecks: FAST/VMCF (ADE product)
Mike Harding WedA :40 Consideration of Group Userids
Jim Ficher WedA :30 Virtual 3800 handling
Bill Temps WedA :30 IOCP in a VM Environment
Selwyn Zerof WedA :45 Using an Apple Laserwriter with VM
Joe Farrachio WedA :35 CP Maintenance EXEC's for multi-CPU installations
Richard Houang WedA :50 A CMS Help Clearing House
Jim McMaster WedA :30 Comparing Three VM Backup Products
Gabe Goldberg WedA :30 Everything you wanted in a COPY program (V/COPY)
AnnMarie MarcouxWedP1 :30 Padded Cells
Bob O'Hara WedP2 1:15 RxCMS, an experimental 31 bit CMS at Yorktown
Selwyn Zerof WedP3 :45 Doing REXX: Program Conversion
Charles Daney WedP4 1:15 Using a REXX package interface
Gabe Goldberg WedP5 1:00 A DBMS system based on CMS primitives
Bill Temps XhuA1 1:00 VM System Software Change Management
Lorne Conell XhuA2 1:00 Fast Checkpointing/checkpoint & Warm Start tutorial
Charlie Whitman XhuA3 :45 Interesting Uses for VMGROUP=YES DCSS's
Barry Gates XhuA4 1:00 Tutorial: Writing your own assembler macros
Dave Gomberg XhuP1 1:15 Source roundtable
Joe Farrachio XhuP2 :35 Simple shadow conference techniques
Jim Fisher XhuP3 :30 VM/XA Experiences
Lynn Wheeler XhuP4 1:00 Networking Research
Tom Foth XhuP5 1:15 XEDIT for fun and profit (Thursday only)

*** APPENDED 02/18/87 15:44:11 BY UCS/DAVE ***

.... Lynn Wheeler, K83/801, ALM-RES, 457-2680(408-927)/427-4536(408-997)
CSNET/ARPANET: Wheeler@IBM.COM

... snip ... top of post, old email index

IBM VMITE ... was sort of the IBM internal version of vm workship ... had first been held at san jose research in early 70s ... and was still being held every year in san jose.

technology basis for the modern internet is TCP/IP; operational basis for the modern internet was NSFNET backbone, and business basis for modern internet was CIX.

some old email about the networking activity ... had been working with the participants that would be taking part in NSFNET backbone ... but when the RFP was released, internal politics prevented us from bidding. The director of NSF attempted to help by writing a letter to the corporation, but that just made the internal politics worse:
https://www.garlic.com/~lynn/lhwemail.html#nsfnet

I had given the VM performance history presentation at SEAS the year before ... and have recently had repeat performance at HILLGANG meeting.

--
virtualization experience starting Jan1968, online at home since Mar1970

Co-existance of z/OS and z/VM on same DASD farm

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@GARLIC.COM (Anne & Lynn Wheeler)
Subject: Re: Co-existance of z/OS and z/VM on same DASD farm
Newsgroups: bit.listserv.ibm-main
Date: 18 May 2012 13:33:32 -0700
PaulGBoulder@AIM.COM (Paul Gilmartin) writes:
And somewhere in there, there was something like VM/XA/SF (System Facility), intended to allow virtual machines for development and testing, but not to support emigration of the OS workload as happened in the VSCR crisis.

re:
https://www.garlic.com/~lynn/2012g.html#17 Co-existance of z/OS and z/VM on same DASD farm

the POK group did VMTOOL that was supposed to be for internal use only for MVX/XA development. However, eventually the decision was made to release it as VM/SF ... for customer aid in MVS to MVS/XA conversion.

There was lots of internal politics. Internally, vm370 had been ported and running in 370/XA support ... had much better function, features, performance, reliability, etc than VM/SF. However, there was growing politics to turn VM/SF into VM/XA ... even tho the vm370 solution running in XA-mode was significantly better. Part of the issue was that VM/SF was from the POK "high-end" group ... which was responsible for XA. vm370 was still from the endicott mid-range group ... which had less political clout.

old post with mention of vm/811 (aka vm/sf ... XA was referred to as "811" internally for the nov1978 date on lots of the XA architecture documents).
https://www.garlic.com/~lynn/2011b.html#70 VM/370 3081
and discussion (with old email) about vm370 running in xa-mode
https://www.garlic.com/~lynn/2011c.html#87 A History of VM Performance

with regard to "FBA" ... I've mentioned before that I was told that it would cost $26M to release MVS support for FBA (fixed-block archtecture, at the time 3370s) ... even if I gave the MVS group fully integrated and tested code. The $26M was just for education and documentation changes. To justify the $26M, I had to show incremental new disk sales (on the order of ten times the cost ... i.e. around $300M); and they were claiming that they were making & selling as much disks as possible ... and if MVS had FBA support ... customers would just switch to having the same amount of FBA as CKD. I wasn't allowed to use business justification for drastically reduced lifetime costs ... I had to have business justification showing additional new sales. As as been pointed out ... current disks are all FBA ... there haven't been real CDK disks made for decades. misc. past posts mentioning DASD, CKD, FBA, multi-track search, etc
https://www.garlic.com/~lynn/submain.html#dasd

--
virtualization experience starting Jan1968, online at home since Mar1970

Psychology Of Fraud: Why Good People Do Bad Things

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 19 May, 2012
Subject: Psychology Of Fraud: Why Good People Do Bad Things
Blog: Financial Crime Risk, Fraud and Security
re:
https://www.garlic.com/~lynn/2012f.html#74 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012f.html#91 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012g.html#14 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012g.html#16 Psychology Of Fraud: Why Good People Do Bad Things

#1 on times list of those responsible:
http://content.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877339,00.html
#2 on times list
http://content.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877330,00.html
#3 on times list:
http://content.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877331,00.html
#4 on times list
http://www.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877323,00.html

Weill is well down the list even tho he was the force behind the repeal of Glass-Steagall
http://www.pbs.org/wgbh/pages/frontline/shows/wallstreet/weill/

However, the four largest too-big-to-fail are still carrying $5.2T in toxic assets "off-book" at the end of 2008 (with citi carrying the most of the four)
Bank's Hidden Junk Menaces $1 Trillion Purge
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=akv_p6LBNIdw&refer=home

in congressional hearings into the pivotal role that the rating agencies played ... they accepted money from the loan originators to give triple-A ratings on toxic CDOs (securitized loans) even when the rating agencies knew they weren't worth triple-A ... this was major contributor in being able to do $27T during the bubble
Evil Wall Street Exports Boomed With 'Fools' Born to Buy Debt
https://www.bloomberg.com/news/articles/2008-10-27/evil-wall-street-exports-boomed-with-fools-born-to-buy-debt

the triple-A enable loan originators to open whole new market and source of funds ... those large institutions that only dealt in triple-A (like large retirement funds) ... and provide nearly unlimited funds. Triple-A also trumped documentation ... allowing for no-documentation & liar loans. Both drug cartels (for money laundering, reports of this activity resulted in label too-big-to-jail in addition to too-big-to-fail) and real-estate speculators were able to take advantage of the no-documentation loans (and being able to pay for triple-A eliminated any reason for loan originators to care about borrower's qualifications and/or loan quality). The triple-A toxic CDOs enabling no-documentation loans then are the equivalent to Brokers' Loans that caused the crash of '29. With no-documentation, 1% interest only payment ARMS, speculators could see 2000% ROI in parts of the country with 20-30% inflation.

Recent CBS 60mins report about auditors, SEC, and Federal Reserve all had people at Lehman and just sat on the sidelines watching while it all happens
http://www.cbsnews.com/videos/the-case-against-lehman-brothers/

... as well as the other regulatory agencies sitting on the sidelines ... then are at least: see no evil, hear no evil, speak no evil:
https://en.wikipedia.org/wiki/Three_wise_monkeys

As mentioned upthread, Sarbanes-Oxley had SEC doing something about rating agencies ... but as the GAO reports show, the congressional hearings into rating agencies, and the testimony by the person that tried unsuccessfully for a decade to get SEC to do something about Madoff ... SEC was doing very little about anything during the last decade.

recent posts mentioning $5.2T, $27T, too-big-to-fail, Sarbanes-Oxley, etc
https://www.garlic.com/~lynn/2012.html#0 Revolution Through Banking?
https://www.garlic.com/~lynn/2012.html#1 The war on terabytes
https://www.garlic.com/~lynn/2012.html#18 SEC v. Citigroup, How to Avoid (Greater) Disaster
https://www.garlic.com/~lynn/2012.html#21 Zombie Banks
https://www.garlic.com/~lynn/2012.html#25 You may ask yourself, well, how did I get here?
https://www.garlic.com/~lynn/2012.html#26 What's your favorite quote on "accountability"?
https://www.garlic.com/~lynn/2012.html#30 Age of Greed: The Triumph of Finance and the Decline of America, 1970 to the Present
https://www.garlic.com/~lynn/2012.html#32 Wall Street Bonuses May Reach Lowest Level in 3 Years
https://www.garlic.com/~lynn/2012.html#70 Regulatory Agency logo
https://www.garlic.com/~lynn/2012b.html#16 Interview of Mr. John Reed regarding banking fixing the game
https://www.garlic.com/~lynn/2012b.html#19 "Buffett Tax" and truth in numbers
https://www.garlic.com/~lynn/2012b.html#35 Entropy and #SocialMedia
https://www.garlic.com/~lynn/2012b.html#44 What's the most interesting thing you do in your non-work life?
https://www.garlic.com/~lynn/2012b.html#53 Can America Lead the World's Fight Against Corruption?
https://www.garlic.com/~lynn/2012b.html#54 The New Age Bounty Hunger -- Showdown at the SEC Corral
https://www.garlic.com/~lynn/2012b.html#65 Why Wall Street Should Stop Whining
https://www.garlic.com/~lynn/2012b.html#67 How Economists Contributed to the Financial Crisis
https://www.garlic.com/~lynn/2012b.html#87 The Benefit and The Burden
https://www.garlic.com/~lynn/2012b.html#95 Bank of America Fined $1 Billion for Mortgage Fraud
https://www.garlic.com/~lynn/2012c.html#0 New theory of moral behavior may explain recent ethical lapses in banking industry
https://www.garlic.com/~lynn/2012c.html#13 Study links ultrafast machine trading with risk of crash
https://www.garlic.com/~lynn/2012c.html#25 Goldman Sachs P.R. Chief's Accidental Exit Interview
https://www.garlic.com/~lynn/2012c.html#30 US real-estate has lost $7T in value
https://www.garlic.com/~lynn/2012c.html#31 US real-estate has lost $7T in value
https://www.garlic.com/~lynn/2012c.html#32 US real-estate has lost $7T in value
https://www.garlic.com/~lynn/2012c.html#36 US real-estate has lost $7T in value
https://www.garlic.com/~lynn/2012c.html#37 US real-estate has lost $7T in value
https://www.garlic.com/~lynn/2012c.html#38 The Death of MERS
https://www.garlic.com/~lynn/2012c.html#44 New Citigroup Looks Too Much Like the Old One
https://www.garlic.com/~lynn/2012c.html#45 Fannie, Freddie Charge Taxpayers For Legal Bills
https://www.garlic.com/~lynn/2012c.html#46 PC industry is heading for more change
https://www.garlic.com/~lynn/2012c.html#52 PC industry is heading for more change
https://www.garlic.com/~lynn/2012c.html#54 PC industry is heading for more change
https://www.garlic.com/~lynn/2012c.html#55 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#5 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#16 IBM cuts more than 1,000 U.S. Workers
https://www.garlic.com/~lynn/2012d.html#32 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#39 Fannie and Freddie must go - here's how
https://www.garlic.com/~lynn/2012d.html#42 China's J-20 Stealth Fighter Is Already Doing A Whole Lot More Than Anyone Expected
https://www.garlic.com/~lynn/2012d.html#45 Banks Repaid Fed Bailout With Other Fed Money: Government Report
https://www.garlic.com/~lynn/2012d.html#48 IBM cuts more than 1,000 U.S. workers
https://www.garlic.com/~lynn/2012e.html#1 The Dallas Fed Is Calling For The Immediate Breakup Of Large Banks
https://www.garlic.com/~lynn/2012e.html#23 Are mothers naturally better at OODA because they always have the Win in mind?
https://www.garlic.com/~lynn/2012e.html#30 Senators Who Voted Against Ending Big Oil Tax Breaks Received Millions From Big Oil
https://www.garlic.com/~lynn/2012e.html#31 PC industry is heading for more change
https://www.garlic.com/~lynn/2012e.html#33 PC industry is heading for more change
https://www.garlic.com/~lynn/2012e.html#35 The Dallas Fed Is Calling For The Immediate Breakup Of Large Banks
https://www.garlic.com/~lynn/2012e.html#37 The $30 billion Social Security hack
https://www.garlic.com/~lynn/2012e.html#40 Who Increased the Debt?
https://www.garlic.com/~lynn/2012e.html#42 Who Increased the Debt?
https://www.garlic.com/~lynn/2012e.html#57 speculation
https://www.garlic.com/~lynn/2012e.html#58 Word Length
https://www.garlic.com/~lynn/2012e.html#86 CISPA legislation seen by many as SOPA 2.0
https://www.garlic.com/~lynn/2012f.html#14 Free $10 Million Loans For All! and Other Wall Street Notes
https://www.garlic.com/~lynn/2012f.html#31 Rome speaks to us. Their example can inspire us to avoid their fate
https://www.garlic.com/~lynn/2012f.html#63 One maths formula and the financial crash
https://www.garlic.com/~lynn/2012f.html#66 Predator GE: We Bring Bad Things to Life
https://www.garlic.com/~lynn/2012f.html#69 Freefall: America, Free Markets, and the Sinking of the World Economy
https://www.garlic.com/~lynn/2012f.html#74 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012f.html#75 Fed Report: Mortgage Mess NOT an Inside Job
https://www.garlic.com/~lynn/2012f.html#80 The Failure of Central Planning
https://www.garlic.com/~lynn/2012f.html#84 How do you feel about the fact that India has more employees than US?
https://www.garlic.com/~lynn/2012f.html#87 How do you feel about the fact that India has more employees than US?
https://www.garlic.com/~lynn/2012f.html#88 Defense acquisitions are broken and no one cares
https://www.garlic.com/~lynn/2012g.html#6 Adult Supervision
https://www.garlic.com/~lynn/2012g.html#7 Adult Supervision
https://www.garlic.com/~lynn/2012g.html#8 Adult Supervision
https://www.garlic.com/~lynn/2012g.html#9 JPM LOSES $2 BILLION USD!
https://www.garlic.com/~lynn/2012g.html#12 JPM LOSES $2 BILLION USD!

--
virtualization experience starting Jan1968, online at home since Mar1970

Closure in Disappearance of Computer Scientist

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 19 May, 2012
Subject: Closure in Disappearance of Computer Scientist
Blog: Google+
re:
https://plus.google.com/u/0/102794881687002297268/posts/3mLL1gA4fHa

Closure in Disappearance of Computer Scientist
http://bits.blogs.nytimes.com/2012/05/18/closure-in-disappearance-of-computer-scientist-jim-gray/

above references (from 2008):

A Tribute to Jim Gray: Sometimes Nice Guys Do Finish First
http://bits.blogs.nytimes.com/2008/05/31/a-tribute-to-jim-gray-sometimes-nice-guys-do-finish-first/

..

Sailing Mystery Unsolved: Court Declares Jim Gray Dead
http://www.informationweek.com/database/sailing-mystery-unsolved-court-declares-jim-gray-dead/d/d-id/1104453

above references (from 2007):

The Search For Microsoft Researcher Jim Gray; Colleagues rallied to look for the renowned computer scientist, but to no avail.
http://www.informationweek.com/the-search-for-microsoft-researcher-jim-gray/d/d-id/1053601

I worked with Jim in the 70s and then he palmed some amount off onto me when he left for Tandem. Before he disappeared, he con'ed me into interviewing for chief security architect in redmond ... interview went on for a few weeks, but we never came to an agreement.

also (linkedin) z/VM group:
http://lnkd.in/C2yn7p

The original relational/SQL implementation was done under vm370 on 370/145 in SJR (bldg. 28). Later there was System/R technology transfer from SJR to Endicott for SQL/DS. Folklore was that it was done under the corporate radar while they were focused on EAGLE as the strategic corporation DBMS effort. Then when EAGLE imploded, there was a request about how long would it take to port System/R to MVS (for DB2). misc. past posts mentioning System/R
https://www.garlic.com/~lynn/submain.html#systemr

I got blamed for online computer conferencing on the internal network (larger than arpanet/internet until late '85 or early '86) in the late 70s & early 80s.
https://www.garlic.com/~lynn/subnetwork.html#internalnet

Shortly after he left SJR, I visited Jim at Tandem and then distributed a trip report on the visit. This saw big upswing in online activity contributing to (from IBM Jargon):

Tandem Memos - n. Something constructive but hard to control; a fresh of breath air (sic). That's another Tandem Memos. A phrase to worry middle management. It refers to the computer-based conference (widely distributed in 1981) in which many technical personnel expressed dissatisfaction with the tools available to them at that time, and also constructively criticized the way products were [are] developed. The memos are required reading for anyone with a serious interest in quality products. If you have not seen the memos, try reading the November 1981 Datamation summary.

... snip ...

folklore is that when the executive committee was told about online computer conferencing (and internal network), 5of6 wanted to fire me.

Intersection of Gray, Tandem, Tandem Memos, Grenoble Science Center, and academic dispute about "Local LRU" vis-a-vis Global LRU ... from recent discussion about Grenoble Science Center:

In early 70s, Grenoble did modifications to CP67 that implemented "working set dispatcher" ... from 1968 acm paper ... and grenoble published paper in acm about their work. As undergraduate in the 60s at WSU, I had done something different that was much more dynamic ... but also differed from in being global LRU rather than local LRU page replacement.

In the early 70s, cambridge was running my stuff on 768kbyte 360/67 (104 pageable pages after fixed storage requirements) with nearly identical workload and response as Grenoble's on 1mbyte 360/67 (156 pageable pages after fixed storage requirements). The difference Cambridge was running 70-75 users to Grenoble's 30-35 users (i.e. 2/3rds the number of pageable pages with twice the users doing similar workload and getting similar response).

I leave Cambridge for SJR 1977, late 70s and early 80s, I'm blamed for online computer conferencing on the internal network. Jim Gray leaves SJR for tandem and palms off a bunch of his stuff on me. I visit Jim at Tandem and distribute trip report on the internal network which eventually turns into Tandem Memos. At ACM SIGOPS (asilomar 14-16Dec81), Jim Gray wants me to help a tandem co-worker get his Stanford PHD on global LRU. Side for "local LRU" has mounted a campaign against Stanford awarding the PHD ... since global LRU is in conflict with "local LRU". Grenoble had sent me raw data and draft of their ACM paper on CP67 running "working set dispatcher" (which I still had). I still had comparison data from local LRU at Cambridge. My local management prohibits me from sending response for nearly a year ... copy of part of response is here.
https://www.garlic.com/~lynn/2006w.html#email821019

I hope that research management is doing it as part of punishment for doing Tandem Memos and not because they are taking sides in the academic dispute on local/global LRU. Lots of archived passed posts on working sets, global/local LRU, clock, etc
https://www.garlic.com/~lynn/subtopic.html#wsclock

past posts mentioning disappearance and/or tribute to Jim:
https://www.garlic.com/~lynn/2007g.html#28 Jim Gray Is Missing
https://www.garlic.com/~lynn/2007i.html#68 A tribute to Jim Gray
https://www.garlic.com/~lynn/2008d.html#25 Remembering The Search For Jim Gray, A Year Later
https://www.garlic.com/~lynn/2008i.html#32 A Tribute to Jim Gray: Sometimes Nice Guys Do Finish First
https://www.garlic.com/~lynn/2008i.html#36 A Tribute to Jim Gray: Sometimes Nice Guys Do Finish First
https://www.garlic.com/~lynn/2008i.html#40 A Tribute to Jim Gray: Sometimes Nice Guys Do Finish First
https://www.garlic.com/~lynn/2008p.html#27 Father Of Financial Dataprocessing

--
virtualization experience starting Jan1968, online at home since Mar1970

Psychology Of Fraud: Why Good People Do Bad Things

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 19 May, 2012
Subject: Psychology Of Fraud: Why Good People Do Bad Things
Blog: Financial Crime Risk, Fraud and Security
re:
https://www.garlic.com/~lynn/2012f.html#74 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012f.html#91 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012g.html#14 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012g.html#16 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012g.html#20 Psychology Of Fraud: Why Good People Do Bad Things

and #1 on times list did favors in washington, Age of Greed pg 370:
In addition, the Justice Department was now investigating reduced rate mortgages Mozilo allegedly sold to Senators Chris Dodd of Connecticut and Kent Conrad of North Dakota, as well as two former heads of Fannie Mae, Jim Johnson and Franklin Raines. They were known as "Friends of Angelo."

... snip ...

at next level of detail, Wharton article that estimates 1000 are responsible for 80% of the mess ... gone behind paywall but lives free at wayback machine:
https://web.archive.org/web/20080606084328/http://knowledge.wharton.upenn.edu/article.cfm?articleid=1933

and that it would go a long way to correcting the situation if the gov could figure out how to eliminate them; aka Obama's economic "A-team" (that was going to hold accountable those responsible) rather than the "B-team". Note that the (apr2008) article was somewhat optimistic on future prospects.

note: if you get the wayback "welcome" page ... click on the "Impatient!" at middle right-hand side

Note part of the issue is somewhat obfuscated ... in the past depository institutions used deposits for loans&mortgages ... this time it was primarily the $27T in triple-A rated toxic CDOs (although too-big-to-fail depository institutions were put at risk playing with triple-A rated toxic CDOs)

Head of Federal Reserve isn't on Times "mess" list for monetary policy. Depository institutions (and non-depository loan originators) were able to circumvent FED with funds from $27T in triple-A rated toxic CDOs (as well as using CDOs to move loans off their books). Head of Federal Reserve (and head of SEC) are on Times "mess" list for failure to perform any regulatory oversight.

also (including the $5.2T that were still "off-book" for the four largest too-big-to-fail at the end of 2008):

Greenspan Slept as Off-Books Debt Escaped Scrutiny
http://www.bloomberg.com/apps/news?pid=newsarchive&refer=home&sid=aYJZOB_gZi0I

some more on #1 on Times mess list ... corporation having been taken over by BofA

Bank of America: Too Crooked to Fail; The bank has defrauded everyone from investors and insurers to homeowners and the unemployed. So why does the government keep bailing it out?
http://www.rollingstone.com/politics/news/bank-of-america-too-crooked-to-fail-20120314

past posts mentioning Wharton article and/or Age of Greed:
https://www.garlic.com/~lynn/2012.html#3 We are on the brink of a historic decision [referring to defence cuts]
https://www.garlic.com/~lynn/2012.html#17 What's your favorite quote on "accountability"?
https://www.garlic.com/~lynn/2012.html#30 Age of Greed: The Triumph of Finance and the Decline of America, 1970 to the Present
https://www.garlic.com/~lynn/2012.html#31 Who originated the phrase "user-friendly"?
https://www.garlic.com/~lynn/2012.html#37 Romney's Opponents Intensify Attacks as Voting Nears
https://www.garlic.com/~lynn/2012.html#40 Age of Greed: The Triumph of Finance and the Decline of America, 1970 to the Present
https://www.garlic.com/~lynn/2012.html#45 You may ask yourself, well, how did I get here?
https://www.garlic.com/~lynn/2012.html#47 Avoiding a lost decade
https://www.garlic.com/~lynn/2012.html#48 Fed's image tarnished by newly released documents
https://www.garlic.com/~lynn/2012.html#57 The Myth of Work-Life Balance
https://www.garlic.com/~lynn/2012.html#62 Railroaded
https://www.garlic.com/~lynn/2012.html#70 Regulatory Agency logo
https://www.garlic.com/~lynn/2012.html#72 Chris Dodd's SOPA crusading
https://www.garlic.com/~lynn/2012.html#77 Age of Greed: The Triumph of Finance and the Decline of America, 1970 to the Present
https://www.garlic.com/~lynn/2012.html#79 Bain: A consulting firm too hot to handle? (Fortune, 1987)
https://www.garlic.com/~lynn/2012.html#87 The PC industry is heading for collapse
https://www.garlic.com/~lynn/2012.html#92 Has anyone successfully migrated off mainframes?
https://www.garlic.com/~lynn/2012.html#95 Can anyone offer some insight
https://www.garlic.com/~lynn/2012b.html#12 Sun Tzu, Boyd, strategy and extensions of same
https://www.garlic.com/~lynn/2012b.html#19 "Buffett Tax" and truth in numbers
https://www.garlic.com/~lynn/2012b.html#29 The speeds of thought, complexities of problems
https://www.garlic.com/~lynn/2012b.html#43 Where are all the old tech workers?
https://www.garlic.com/~lynn/2012b.html#54 The New Age Bounty Hunger -- Showdown at the SEC Corral
https://www.garlic.com/~lynn/2012b.html#74 IBM Doing Some Restructuring?
https://www.garlic.com/~lynn/2012b.html#90 IBM Doing Some Restructuring?
https://www.garlic.com/~lynn/2012b.html#99 New theory of moral behavior may explain recent ethical lapses in banking industry
https://www.garlic.com/~lynn/2012c.html#2 Occupy the SEC (Securities & Exchange Commission)
https://www.garlic.com/~lynn/2012c.html#5 Too big not to fail
https://www.garlic.com/~lynn/2012c.html#19 Occupy the SEC Pitches An Extreme Makeover of Wall Street
https://www.garlic.com/~lynn/2012c.html#54 PC industry is heading for more change
https://www.garlic.com/~lynn/2012c.html#62 Why Is Finance So Big?
https://www.garlic.com/~lynn/2012d.html#13 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#14 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#48 IBM cuts more than 1,000 U.S. workers
https://www.garlic.com/~lynn/2012d.html#71 Memory versus processor speed
https://www.garlic.com/~lynn/2012e.html#91 The Fractal Organization: Creating sustainable organizations with the Viable System Model
https://www.garlic.com/~lynn/2012f.html#35 Inequality and Investment Bubbles: A Clearer Link Is Established
https://www.garlic.com/~lynn/2012f.html#66 Predator GE: We Bring Bad Things to Life
https://www.garlic.com/~lynn/2012f.html#74 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012f.html#86 The Dangers of High-Frequency Trading; Wall Street's Speed Freaks
https://www.garlic.com/~lynn/2012g.html#7 Adult Supervision

--
virtualization experience starting Jan1968, online at home since Mar1970

VM Workshop 2012

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 18 May, 2012
Subject: VM Workshop 2012
Blog: z/VM
re:
http://lnkd.in/Emfz8Z
and
https://www.garlic.com/~lynn/2012g.html#18 VM Workshop 2012

Above reference to DUMPRX ... was a replacement for IPCS that I did in REXX, I had an objective working half-time over 3months, from scratch, do implementation with ten times the function and ten times the performance. I finished early so started developing a library that automatically examined storage for wide-range of failure signatures. I had expected it to be shipped ... but for some reason it never got out of internal use (although nearly every internal datacenter and every customer support PSR were using it). past posts mentioning dumprx
https://www.garlic.com/~lynn/submain.html#dumprx
a couple old emails from 3092 (3090 service processor) group about wanting to include dumprx:
https://www.garlic.com/~lynn/2010e.html#email861031
https://www.garlic.com/~lynn/2010e.html#email861223

Reference to HSDTSFS ... I had project called HSDT (high-speed data transport) doing full-duplex T1 and faster links. some past posts
https://www.garlic.com/~lynn/subnetwork.html#hsdt

I could run tcp/ip ... some past posts mentioning doing RFC1044 support for mainframe tcp/ip product and getting possibly 500 times improvement in bytes moved per instruction executed
https://www.garlic.com/~lynn/subnetwork.html#1044

but RSCS had significant spool-file bottleneck. RSCS used spool-file for repository which had a 4k-byte (page) serialized, synchronous interface. spool-file under heavy load might only be able to deliver 4-6 blocks/sec to single user (16kbytes/sec - 24kbytes/sec). Single T1 required 300kbytes/sec sustained (full-duplex, 1.5mbit/sec in each direction). For HSDT, I needed a spool file interface that could deliver multiple megabytes/sec to RSCS. HSDTSFS leveraged the memory mapped filesystem that I had original done on cp67 ... asynchronous operation, contiguous allocation, multiple block read transfers, write-behind of multiple block writes (to achieve multi-megabyte thruput for rscs). misc. past posts mentioning memory mapped filesystem
https://www.garlic.com/~lynn/submain.html#mmap

I also tried to get HSDTSFS deployed for the internal network backbone ... but this was in the period where there was loads of internal politics and mis-information as part of moving the internal network to SNA/VTAM
https://www.garlic.com/~lynn/2011.html#email870306
other internal network posts
https://www.garlic.com/~lynn/subnetwork.html#internalnet

SNA/VTAM support for even T1 was pure fabrication. Eventually they attempted to demonstrate something with 3737 ... had bunch of 68ks, lots of buffering, spoofed host VTAM with immediate acks (as if the RU had reached the remote end), support single T1 able to do 200kbyte/sec sustained (2/3rds T1 full-duplex).

I've also claimed that the NSFNET backbone called for T1 because HSDT example was already running T1 and faster links. Even with director of NSF help (and making statements what I already had running was at least 5yrs ahead of all RFP responses), didn't make much impact. Winning RFP responses didn't actually install T1 links ... it used 440kbit/sec links ... however, possibly trying to meet the letter of the RFP, they installed telco multiplexor with T1 trunks which multiplexed multiple links/trunk. I would make snide remarks that some of their T1 multiplexed trunks might in-turn, be multiplexed over T3 or even T5 trunks ... so why couldn't they call it T5 NSFNET backbone. misc. past posts
https://www.garlic.com/~lynn/subnetwork.html#nsfnet

Possibly because of my snide remarks and somebody wanting to shut them down, I was asked to be the red team for the T3 NSFNET backbone RFP response ... with a couple dozen people from half dozen labs around the world on the blue team. At the final review, I presented first and then the blue team. Five minutes into the blue team presentation, the executive running the review, pounded on his table and said he would lie down in front of a garbage truck before letting anything but the blue team proposal go forward.

--
virtualization experience starting Jan1968, online at home since Mar1970

Co-existance of z/OS and z/VM on same DASD farm

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@GARLIC.COM (Anne & Lynn Wheeler)
Subject: Re: Co-existance of z/OS and z/VM on same DASD farm
Newsgroups: bit.listserv.ibm-main
Date: 20 May 2012 15:20:00 -0700
phil@VOLTAGE.COM (Phil Smith) writes:
And the VM/XA SPOOL system in general was super-robust - I wrote a system mod (product) that tinkered with SPOOL, and while I created SPOOL files that couldn't be seen, and couldn't be opened, and couldn't be purged by normal means, I *never* took out the rest of SPOOL. Really nice stuff. Especially after the HPO 5 debacle!

re:
https://www.garlic.com/~lynn/2012g.html#17 Co-existance of z/OS and z/VM on same DASD farm
https://www.garlic.com/~lynn/2012g.html#19 Co-existance of z/OS and z/VM on same DASD farm

40th vm370 anniv. this year ... 2012 vm workshop discussion in (linkedin) z/VM
http://lnkd.in/Emfz8Z
some also archived here
https://www.garlic.com/~lynn/2012g.html#18
and
https://www.garlic.com/~lynn/2012g.html#23

I posted schedule for 1987 vm workshop ... mentions I gave two presentations (on performance and networking) and two BOFs (debugging and spool file system rewrite). The spool file system rewrite was because I needed at least a factor of 100 times increase in thruput (for RSCS network thruput). I also made the integrity of the spool file system and the integrity of the overall system completely independent (like I could loose whole spool file disk w/o impacting the running of the system and/or the integrity of the spool files on other disks).

misc. past posts mentioning HSDTSFS:
https://www.garlic.com/~lynn/2000b.html#43 Migrating pages from a paging device (was Re: removal of paging device)
https://www.garlic.com/~lynn/2002b.html#44 PDP-10 Archive migration plan
https://www.garlic.com/~lynn/2003k.html#26 Microkernels are not "all or nothing". Re: Multics Concepts For
https://www.garlic.com/~lynn/2003k.html#63 SPXTAPE status from REXX
https://www.garlic.com/~lynn/2004g.html#19 HERCULES
https://www.garlic.com/~lynn/2004p.html#3 History of C
https://www.garlic.com/~lynn/2005d.html#38 Thou shalt have no other gods before the ANSI C standard
https://www.garlic.com/~lynn/2005s.html#28 MVCIN instruction
https://www.garlic.com/~lynn/2007c.html#21 How many 36-bit Unix ports in the old days?
https://www.garlic.com/~lynn/2008g.html#22 Was CMS multi-tasking?
https://www.garlic.com/~lynn/2009h.html#63 Operating Systems for Virtual Machines
https://www.garlic.com/~lynn/2009o.html#12 Calling ::routines in oorexx 4.0
https://www.garlic.com/~lynn/2010k.html#26 Was VM ever used as an exokernel?
https://www.garlic.com/~lynn/2010k.html#35 Was VM ever used as an exokernel?
https://www.garlic.com/~lynn/2011e.html#25 Multiple Virtual Memory
https://www.garlic.com/~lynn/2011e.html#29 Multiple Virtual Memory

--
virtualization experience starting Jan1968, online at home since Mar1970

VM370 40yr anniv, CP67 44yr anniv

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 21 May, 2012
Subject: VM370 40yr anniv, CP67 44yr anniv
Blog: IBM Historic Computing
some amount in the z/VM discussion group related to 2012 VM Workshop ... here
http://lnkd.in/Emfz8Z

posts also archived here
https://www.garlic.com/~lynn/2012g.html#18
and
https://www.garlic.com/~lynn/2012g.html#23

above includes old email with schedule for 1987 VM Workshop
https://www.garlic.com/~lynn/2012g.html#email870220

CP67 was installed at the Univ. in Jan68 by three people that came out from the Science Center ... and then was announced at the spring '68 SHARE meeting in Houston.

Univ. also had 360/67 installed for TSS ... replacing 709/1401. TSS/360 wasn't really ready and ran as 360/65 with OS/360 for production. I was undergraduate but was responsible for production system. Last week, Jan1968 three people came out from the science center to install cp67.

On weekends, the IBM SE would play with TSS/360 taking turns with me doing system support for os/360 and playing with cp67. Summer 1968, he did a synthetic script benchmark for four simulated users doing fortran edit, compile and execute ... and I then did equivalent synthetic script benchmark on cp67/cms. His tss3/60 simulated four user benchmark had worse trivial response and thruput then my cp67 simulated 35 user benchmark .

CP67 never did move into production use at the univ. although I did a large number of enhancements ... part of presentation that I made at Fall 1968 SHARE meeting:
https://www.garlic.com/~lynn/94.html#18

In spring 1969, I removed 2780 support from HASP (to reduce storage footprint) and replaced it with 2741 & TTY/ASCII terminal support and conversational editor that implemented the CMS edit syntax (no code reuse since the running environments were so different) for online edit&execute environment.

As an aside, does anybody remember the name of the IBM branch person on the Naval Post Graduate account???? Post in "Greater IBM" with relationship between CP/67 at NPG, CP/M, seattle computing and ms/dos:
https://www.garlic.com/~lynn/2012c.html#24

There was semi-humorous reference that TSS had aggregate of 1200 people at time that science center had 12 people on cp67/cms.

Later port of TSS to 370 was very limited availability. However, there was TSS/370 effort to do a extremely stripped down kernel as special product for AT&T which they would use to scaffold UNIX interface.

Stanford did Orvyl/Wylbur for their 360/67 ... Orvyl was the virtual memory operating system, Wybur editor was later ported to MVS and still survives in some place.

Michigan did virtual memory "MTS" (Michigan terminal system) for their 360/67. Later ported to 370 and MTS/370 saw some life at a number of locations

A different kind of virtual memory CP67 story from z/VM discussion about Jim Gray, relational dbms, etc:
http://lnkd.in/C2yn7p
and Google+
https://plus.google.com/u/0/102794881687002297268/posts/3mLL1gA4fHa
also archived here:
https://www.garlic.com/~lynn/2012g.html#21

In early 70s, Grenoble did modifications to CP67 that implemented "working set dispatcher" ... from 1968 acm paper ... and grenoble published paper in acm about their work. As undergraduate in the 60s at WSU, I had done something different that was much more dynamic ... but also differed from in being global LRU rather than local LRU page replacement.

In the early 70s, cambridge was running my stuff on 768kbyte 360/67 (104 pageable pages after fixed storage requirements) with nearly identical workload and response as Grenoble's on 1mbyte 360/67 (156 pageable pages after fixed storage requirements). The difference Cambridge was running 70-75 users to Grenoble's 30-35 users (i.e. 2/3rds the number of pageable pages with twice the users doing similar workload and getting similar response).

I leave Cambridge for SJR 1977, late 70s and early 80s, I'm blamed for online computer conferencing on the internal network. Jim Gray leaves SJR for tandem and palms off a bunch of his stuff on me. I visit Jim at Tandem and distribute trip report on the internal network which eventually turns into Tandem Memos. At ACM SIGOPS (asilomar 14-16Dec81), Jim Gray wants me to help a tandem co-worker get his Stanford PHD on global LRU. Side for "local LRU" has mounted a campaign against Stanford awarding the PHD ... since global LRU is in conflict with "local LRU". Grenoble had sent me raw data and draft of their ACM paper on CP67 running "working set dispatcher" (which I still had). I still had comparison data from local LRU at Cambridge. My local management prohibits me from sending response for nearly a year ... copy of part of response is here.
https://www.garlic.com/~lynn/2006w.html#email821019

I hope that research management is doing it as part of punishment for doing Tandem Memos and not because they are taking sides in the academic dispute on local/global LRU. Lots of archived passed posts on working sets, global/local LRU, clock, etc
https://www.garlic.com/~lynn/subtopic.html#wsclock

... snip ...

recent Amdahl thread in MainframeZone:
http://lnkd.in/at94Sb
some of my comments also archived here:
https://www.garlic.com/~lynn/2012f.html#78
https://www.garlic.com/~lynn/2012f.html#93

tale about first Amdahl machine to be installed in "true blue" commercial account (up until then had been education, scientific, etc) ... and I could kiss my career goodby ... since the branch manager was good buddies with the CEO:
https://www.garlic.com/~lynn/2012f.html#21

note that MTS folklore is that it was originally scaffolded off of Lincoln Labs LLMPS.

Cambridge had originally done virtual machines on 360/40 with hardware modifications to support virtual memory (i.e. 360/67 was only 360 that came standard with hardware virtual memory support) ... paper on cp40 that Comeau gave at 1982 SEAS meeting:
https://www.garlic.com/~lynn/cp40seas1982.txt

when 360/67 was finally available, cp40 morphed into cp67. cp67 was installed on Lincoln Labs 360/67 in 1967 and then last week Jan1968, installed at univ where I was undergraduate.

For totally unrelated, yesterday I got asked to (also) help with history for the 40th anniversary of ATM (automated teller machine) ... same year as vm370.

Other folklore was one of the first ATMs was installed across the street from McDonalds ... and kids discovered they could feed tomato&mustard packets into the card reader. The card reader feed (magstripe reader) then was retrofitted with sensors that could differentiate between payment card and condiment packets.

Lincoln Labs was also responsible for the "Search List" RPQ instruction that showed up on lots of 360/67s. CP67 changed its internal kernel storage management to use the search list instruction (best fit ... potentially following hundreds of list entries). There was special code in cp67 program interrupt handler to recognize invalid instruction interrupt (for search list) and simulate the operation. As other CP67 pathlengths were reduced ... storage management started to represent significant percentage of total CP67 overhead (even using search list instruction). Summer of 1969, I made the changes so that high-use kernel routine linkage was changed from SVC interrupt to BALR ... including storage management ... overall it made big reduction ... but it wasn't significant percent change of total storage management pathlength.

Then there was study for using "sub-pools" for managing most frequent storage operations. This drop storage managment that was hitting 15-20% with lots of logged-in users and allocated storage to nearly negligible (something like 14 instructions for BALR subpool call). Issue was if there are hundreds of list elements to scan ... the search list instruction might speed it up by 2-3 times ... but it still required hundreds of storage fetches (and corresponding machine cycles).

--
virtualization experience starting Jan1968, online at home since Mar1970

IBM's first tape drive turns 60 (makes you feel old!)

From: lynn@GARLIC.COM (Anne & Lynn Wheeler)
Subject: Re: IBM's first tape drive turns 60 (makes you feel old!)
Newsgroups: bit.listserv.ibm-main
Date: 22 May 2012 07:16:20 -0700
R.Skorupka@BREMULTIBANK.COM.PL (R.S.) writes:
BTW: I heard about 1-inch tapes. Is it true? Did such wide tapes exist? Current cartridges are 1/2 inch wide. The article says that 729 was also 1/2 inch.

how do you feel about 3850
http://www-03.ibm.com/ibm/history/exhibits/storage/storage_3850.html
http://www.columbia.edu/cu/computinghistory/mss.html

cartridges (tape 4inches wide by 770inches)?
http://www-03.ibm.com/ibm/history/exhibits/storage/storage_PH3850B.html
https://en.wikipedia.org/wiki/IBM_3850
http://www.columbia.edu/cu/computinghistory/media.html

--
virtualization experience starting Jan1968, online at home since Mar1970

Weak PINs, Habits Increase Risk of Financial Fraud

From: lynn@garlic.com (Lynn Wheeler)
Date: 22 May, 2012
Subject: Weak PINs, Habits Increase Risk of Financial Fraud
Blog: Financial Crime Risk, Fraud and Security
Weak PINs, Habits Increase Risk of Financial Fraud
http://www.marketwatch.com/story/weak-pins-habits-increase-risk-of-financial-fraud-2012-05-22

from above:

How people choose their ATM and debit card personal identification numbers (PINs) could predict how easily their accounts may be struck by fraud, according to a recent security study. That's one reason why PULSE, one of the nation's leading debit/ATM networks, recognizes ATM & Debit Card Safety Awareness Month each June.

... snip ...

This is something of obfuscation, multi-factor authentication assumes independent exploits & compromises. From 3-factor authentication paradigm
https://www.garlic.com/~lynn/subintegrity.html#3factor

something you have (card, magstripe, etc)
something you know (pin, password)
something you are (biometrics)

PINs are countermeasure to lost/stolen card. A couple problems/issues:

• with the enormous proliferation in shared-secret, something you know authentication, there is requirement for a unique value, impossible to guess (making it impossible to remember) for every unique security domain. consequences is that studies have claimed 1/3rd of debit/atm cards have PIN written on them
https://www.garlic.com/~lynn/subintegrity.html#secrets

• skimming static information at end-point has been a threat/vulnerability for a couple decades, originally used for skimming magstripe at point-of-sale for creation of counterfeit card ... but compromised end-points could as easily skim both magstripe and PIN (as they can skim just magstripe) ... invalidating assumption about independent vulnerability

There has also been some obfuscation. In the 70s, there was threat from counterfeit credit magstripe cards that were created from algorithms generating valid magstripe. As a countermeasure ... there was a secure hash/code added to the magstripe information. However, PIN debit cards weren't vulnerable ... since the algorithm generating a valid magstripe wasn't also able to generate valid PIN. When the industry started moving to allow debit cards to be used at point-of-sale in PIN-less transactions .... all of a sudden debit cards became vulnerable to algorithm generated counterfeit magstripe cards. There was some amount of press about debit cards having less security than credit cards .... which was obfuscation for enabling debit cards to be used at point-of-sale in PIN-less transactions

--
virtualization experience starting Jan1968, online at home since Mar1970

REPEAL OF GLASS-STEAGALL DID NOT CAUSE THE FINANCIAL CRISIS - WHAT DO YOU THINK?

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 22 May, 2012
Subject: REPEAL OF GLASS-STEAGALL DID NOT CAUSE THE FINANCIAL CRISIS - WHAT DO YOU THINK?
Blog: Financial Crime Risk, Fraud and Security
Reinstating an Old Rule Is Not a Cure for Crisis
http://dealbook.nytimes.com/2012/05/21/reinstating-an-old-rule-is-not-a-cure-for-crisis/

Lack of adult supervision allowed extremely risky activity. Repeal of Glass-Steagall was just part of repeal of regulation and failure to enforce regulation that went on during the period. Repeal of Glass-Steagall contributed to too-big-to-fail & putting taxpayer on the hook for the extreme risky activity. Putting the taxpayer on the hook for extreme risky behavior drastically increases moral hazard when downside for risky behavior has been mostly eliminated. GLBA was just part of that activity.

The equivalent to Brokers' Loans that were the root of the crash of '29 was the no-documentation loans that were enabled by rating agencies willing to sell triple-A ratings on toxic CDOs (when they knew they weren't worth triple-A, testimony from congressional hearings into role that rating agencies played) ... the triple-A ratings enabled them being sold to large institutional investors that are restricted to dealing in triple-A and greatly facilitating $27T being done during the bubble:
Evil Wall Street Exports Boomed With 'Fools' Born to Buy Debt
https://www.bloomberg.com/news/articles/2008-10-27/evil-wall-street-exports-boomed-with-fools-born-to-buy-debt

from 30s' congressional Pecora hearings:
BROKERS' LOANS AND INDUSTRIAL DEPRESSION

For the purpose of making it perfectly clear that the present industrial depression was due to the inflation of credit on brokers' loans, as obtained from the Bureau of Research of the Federal Reserve Board, the figures show that the inflation of credit for speculative purposes on stock exchanges were responsible directly for a rise in the average of quotations of the stocks from sixty in 1922 to 225 in 1929 to 35 in 1932 and that the change in the value of such Stocks listed on the New York Stock Exchange went through the same identical changes in almost identical percentages.


.... snip ...

The difference being that the Brokers' Loans resulted in enormous bubble/inflation in the stock market, the triple-A ratings "for sale" enabled the no-documentation loans and the inflation/bubble in the real-estate market.

Somewhat aside ... the rhetoric on the floor of congress regarding the primary purpose of GLBA (better known now for the repeal of Glass-Steagall ... allowing regulated, safe & sound depository institution to move into extremely risky behavior) was to prevent institutions that didn't already have banking charters from getting banking charters aka eliminating competition from other institutions moving into depository banking business (banks can add extremely risky activity ... but others couldn't become depository banks).

Role forward to the bubble crash, $700B TARP funds was appropriated for purchase of toxic assets ... but that was before they knew there was $27T ... and just the four largest too-big-to-fail were carrying $5.2T of toxic assets "off-book" the end of 2008:
Bank's Hidden Junk Menaces $1 Trillion Purge
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=akv_p6LBNIdw&refer=home

... and they had to create another purpose for TARP funds .... and it became the responsibility of the federal reserve to perform the bail-out and rescues behind the scenes. As part of the federal reserve activity ... they granted banking charters to several institutions, that didn't already have ones (making them eligible to assistance reserved for regulated depository institutions), which should have been precluded under GLBA

x-over from psychology of fraud:
https://www.garlic.com/~lynn/2012f.html#74 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012f.html#91 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012g.html#14 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012g.html#16 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012g.html#20 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012g.html#22 Psychology Of Fraud: Why Good People Do Bad Things

#1 on times list of those responsible:
http://content.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877339,00.html
#2 on times list
http://content.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877330,00.html
#3 on times list:
http://content.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877331,00.html
#4 on times list
http://www.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877323,00.html

number one on the list was using loan origination company that wasn't depository institution .... instead of deposits (for loans), it was able to immediately package loans at triple-A rated toxic CDOs and unload them (paying for the triple-A rating when the rating agencies knew they weren't worth triple-A).

number two on the list ... while responsible for GLBA ... was also heavily involved in lots of deregulation activity ... including exempting CDSs from oversight (modulo GLBA keeping competition from moving into depository banking business)

number three on the list ... avoided performing a lot of regulatory activity ... including the takeover of CITI which violated Glass-Steagall ... giving an exemption to allow Glass-Steagall to be repealed. Also allowing enormous amounts of toxic assets to pile up "off-book" ... including the $5.2T "off-book" for just the four largest too-big-to-fail
http://www.bloomberg.com/apps/news?pid=newsarchive&refer=home&sid=aYJZOB_gZi0I

as did number four on the list ... avoiding performing regulatory activity

Note that in 2008, CITI had unloaded several tens of billions of its toxic assets at 22cents on the dollar. At the end of 2008 with $5.2T in toxic assets still being carried by the four largest too-big-to-fail institutions
Bank's Hidden Junk Menaces $1 Trillion Purge
>http://www.bloomberg.com/apps/news?pid=newsarchive&sid=akv_p6LBNIdw&refer=home

if those toxic assets were brought back onto the balance sheet and valued ... the loses would have had all four institutions declared bankrupt and forced into liquidation.

Repeal of Glass-Steagall and allowing depository institutions to get into really risky business was part of the whole paradigm of allowing them to do anything they wanted to w/o adult supervision and putting the taxpayer on the hook for the consequences.

other recent mention of Pecora and/or Brokers' Loans:
https://www.garlic.com/~lynn/2012b.html#5 The round wheels industry is heading for collapse
https://www.garlic.com/~lynn/2012b.html#56 What's the most interesting thing you do in your non-work life?
https://www.garlic.com/~lynn/2012c.html#37 US real-estate has lost $7T in value
https://www.garlic.com/~lynn/2012c.html#52 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#32 PC industry is heading for more change
https://www.garlic.com/~lynn/2012e.html#42 Who Increased the Debt?
https://www.garlic.com/~lynn/2012g.html#7 Adult Supervision

--
virtualization experience starting Jan1968, online at home since Mar1970

24/7/365 appropriateness was Re: IBMLink outages in 2012

From: lynn@GARLIC.COM (Anne & Lynn Wheeler)
Subject: Re: 24/7/365 appropriateness was Re: IBMLink outages in 2012
Newsgroups: bit.listserv.ibm-main
Date: 23 May 2012 06:51:04 -0700
cfmpublic@NS.SYMPATICO.CA (Clark Morris) writes:
On a logical basis I agree with you but has the 24/7/365 shortcut for continuous availability become so pervasive that it is the shorthand way for saying it and is it the way that the general public as opposed to us professional nitpickers best understands it?

when we were doing ha/cmp in the early 90s, one of the customers we called on supported the 1-800 lookup (i.e. 1-800 got routed to dbms transaction that looked up the "real" number for putting the call through) & had "five-nines" availability. the incumbent had redundant hardware ... but required system to be taken down for software maintenance ... short scheduled downtime, once a year blew the outage budget for a nearly a century. ha/cmp didn't have redundant hardware components but had replicated systems and fall-over ... so failures & downtime was masked ... even rolling outages for software system maintenance w/o service impact.

eventually the incumbent vendor came back and said that they could do replicated systems also ... for masking individual system downtime ... but that negated the requirement for redudant hardware.

i was then asked to write a section for the corporae continuous available strategy document ... but the section got pulled after both Rochester and POK complained that they couldn't meet the objectives.

past posts mentioning coining the terms disaster survivability and geographic survivability ... to differentiate from disaster/recovery when out marketing ha/cmp:
https://www.garlic.com/~lynn/submain.html#available

--
virtualization experience starting Jan1968, online at home since Mar1970

24/7/365 appropriateness was Re: IBMLink outages in 2012

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@GARLIC.COM (Anne & Lynn Wheeler)
Subject: Re: 24/7/365 appropriateness was Re: IBMLink outages in 2012
Newsgroups: bit.listserv.ibm-main
Date: 23 May 2012 07:53:26 -0700
bfairchild@ROCKETSOFTWARE.COM (Bill Fairchild) writes:
And the general public, many Dilbertian managers, and even some of us professional nitpickers, think that a job running 1 hour instead of 10 is 900% faster, and that 1 is 10 times smaller than 10. 2+2 no longer = 5; now it equals chartreuse.

Fortunately architects and engineers know how to use mathematically accurate and precise terminology when describing the bridges they design and build, or we would have a lot more cars falling off of collapsing bridges.


re:
https://www.garlic.com/~lynn/2012g.html#29 24/7/365 appropriateness was Re: IBMLink outages in 2012

Volcker in discussion with civil engineering professor about significantly decline in infrastructure projects (as institutions skimmed funds for other purposes & disappearing civil engineering jobs) resulting in universities cutting back civil engineering programs; "Confidence Men", pg290:
Well, I said, 'The trouble with the United States recently is we spent several decades not producing many civil engineers and producing a huge number of financial engineers. And the result is s**tty bridges and a s**tty financial system!

... snip ...

old presentation by Jim Gray on availability ... scanned from paper copy that had been made on copying machine in bldg. 28, SJR
https://www.garlic.com/~lynn/grayft84.pdf

the point (from early 80s) was that majority of outages (scheduled and non-scheduled) had shifted from hardware to software (and human errors).

(early 70s) before virtual memory announcement for 370, a copy of internal document describing the technology leaked to the press. in the wake of the following investigation, all internal copying machines were retrofitted with unique identifier (under the glass) that would appear on all copies made on that machine.

for other drift ... it has been five years since Jim disappeared and cal. court recently declared him dead ... reference in (linkedin) z/VM group:
http://lnkd.in/C2yn7p
also archived here:
https://www.garlic.com/~lynn/2012g.html#21 Closure in Disappearance of Computer Scientist

--
virtualization experience starting Jan1968, online at home since Mar1970

IBM bans Siri: Privacy risk, or corporate paranoia at its best?

Refed: **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 23 May, 2012
Subject: IBM bans Siri: Privacy risk, or corporate paranoia at its best?
Blog: Google+
re:
https://plus.google.com/u/0/102794881687002297268/posts/PfnLC5y16YD

IBM bans Siri: Privacy risk, or corporate paranoia at its best?
http://www.zdnet.com/blog/btl/ibm-bans-siri-privacy-risk-or-corporate-paranoia-at-its-best/77843

The IBM internal network was larger than arpanet/internet from just about the beginning until late '85 or early '86 (about the time the big push started to convert to SNA/VTAM). For security purposes, all links leaving corporate facilities were required to have link encryptors. One of the big barriers were numerous governments around the world granting approval ... especially when link crossed national boundary (between IBM sites in different countries). There was claim that in the mid-80s, the internal network had over half of all link encryptors in the world

In the early 80s, starting to look at "road warrior" support (remote dialin while on the road) ... threat&vulnerability studies turned up a number of things ... including hotel PBXs were viewed as major vulnerability (hotel PBX rooms tended to have little or no security making it easy to place listening/recording devices). The off-premise program resulted in special "encrypting" modems ... with special dial-in procedures for corporate sites.

PBXs were found to have all sorts of vulnerabilities ... it was even demonstrated that PBXs at corporate sites could be compromised to use office phones as listening devices (even when phones were not "off-hook").

--
virtualization experience starting Jan1968, online at home since Mar1970

IBM bans Siri: Privacy risk, or corporate paranoia at its best?

From: lynn@garlic.com (Lynn Wheeler)
Date: 23 May, 2012
Subject: IBM bans Siri: Privacy risk, or corporate paranoia at its best?
Blog: Google+
re:
https://plus.google.com/u/0/102794881687002297268/posts/PfnLC5y16YD
and
https://www.garlic.com/~lynn/2012g.html#31 IBM bans Siri: Privacy risk, or corporate paranoia at its best?

Reference to internal network passing 1000 nodes summer of 1983:
https://www.garlic.com/~lynn/2006k.html#8

also contains a list of all IBM sites that had new nodes added during 1983. misc. past posts mentioning internal network
https://www.garlic.com/~lynn/subnetwork.html#internalnet

At the "great" switch-over from arpanet to internetworking on 1/1/83, arpanet had something like 100 (IMP) network nodes and 255 connected hosts. misc. past posts mentioning arpanet/internet:
https://www.garlic.com/~lynn/subnetwork.html#internet

Late 85 or early 86 both arpanet/internet and internal network passed 2000 nodes.

One of the big issues for internal network was restricting JES2 to boundary nodes for nearly the whole-time. Some of the original internal JES2 network source still carried "TUCC" in the assembler statements. It mapped network nodes into the spare entries left-over for defining psuedo unit record devices in a 255 entry table ... typically on the order of 150-170 available entries. JES2 had unfortunate characteristic of throwing away traffic if the origin node & final destination node wasn't defined in its internal table ... and internal network had already passed 255 nodes. This led to restricting JES2 to boundary nodes ... so that it would at least only trash traffic that it didn't recognize origin ... and not be involved in trashing traffic passing through to other nodes.

JES2 didn't get around to support 999 nodes until well after the internal network passed 1000 nodes ... and didn't get arorund to supporting 1999 nodes until internal network passed 2000 nodes.

Oringinal JES2 network had another unfortunate characteristic that it mixed up JES2 control information in the header with JES2 networking information. As a result, traffic between two different MVS systems operating with different JES2 release levels could result in MVS crashing.

VM networking support had native drivers ... but had layered things cleanly so could also have other drivers ... and a large library of VNET JES2 specific drivers were created. Internally they even had special code for converting JES2 headers between release levels (i.e. the specific JES2 driver would be started that corresponded to the JES2 release level at the other end of the link ... and would reformat any JES2 headers for the corresponding release). There was infamous case in the 80s where San Jose JES2 systems were causing MVS systems in Hursley to crash ... and it was blamed on the local VM network systems ... because the corresponding VM networking JES2 driver to prevent MVS from crashing hadn't been specified. ... misc. past posts mentioning HASP, HASP networking, JES2, and/or JES2 networking
https://www.garlic.com/~lynn/submain.html#hasp

In the 80s, I believe they even stopped shipping to customers the VM native network drivers and started only shipping the VM networking JES2 drivers ... even though the native VM networking drivers were much more efficient and had higher throughput. Misc. past posts mentioning BITNET &/or EARN
https://www.garlic.com/~lynn/subnetwork.html#bitnet

One of the issues was that the communication group was trying hard to restrict PCs & workstations to terminal emulation (both internally & at customers) ... while peer-to-peer internet support was starting for PCs & workstations ... resulting in exploding the number of internet nodes. misc. past posts mentioning terminal emulation
https://www.garlic.com/~lynn/subnetwork.html#emulation

In fact, in the late 80s, a senior disk engineer got a talk scheduled at an internal, annual, world-wide communication group conference and opened with the statement that the communication group was going to be responsible for the demise of the disk division. The issue was that the communication group had a stranglehold and the disk division was starting to see leading edge of drop in disk sales as data was starting to flee the datacenter for more distributed computing friendly platforms. The disk division had come up with some number of solutions to address the problem, but because the communication group owned strategic responsibility for everything that crossed datacenter walls, the disk divisions repeatedly saw the solutions being vetoed.

--
virtualization experience starting Jan1968, online at home since Mar1970

Cartons of Punch Cards

Refed: **, - **, - **, - **
From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Cartons of Punch Cards
Newsgroups: alt.folklore.computers
Date: Thu, 24 May 2012 08:34:08
hancock4 writes:
As I understand it, years ago in foreign countries telephone capacity was limited and phones were expensive, thus many people did not have them. When cell phones came out, it represented a whole new infrastructure that exploded, and many people got connected that way.

expensive/scarcity of telco also shows up in slow-adaption of point-of-sale terminals and magstripe plastic payment cards in europe

as a result, saw chipcards that could do "offline" point-of-sale transactions in europe ... i.e. point-of-sale terminal interacted with chipcard and wasn't required to go online for every transaction.

lot of these were "stored-value" cards ... that had "secure" mechanism for storing & recording value ... somewhat like some of the US metro cards. in the 90s, some of these made pilot excursions into the US ... and we got asked to design&cost dataprocessing infrastructure for scaled-up, country-wide deployment (mostly backup dealing with loading valud into the cards). I also did some financial analysis and nearly all of the infrastructure value motivating the programs was that the operator got the float on the unspent value in the cards. In some case it was like a pyramid scheme where the international license holder effectively got all of the float ... with individual country operators not getting any. then to spur the uptake, there were announcements that the international license holder would split the float with the individual country operators. Then the EU central banks decreed said that interest would have to start being paid on unspent value in the cards ... and the programs just slowly dwindled away.

About that time, some operators in the US introduced an online magstripe stored value ... similar in concept to the EU chipcards but leveraged existing online point-of-sale & telco infrastructures to do account-based operation. they are now marketing as gift and merchant cards ... large racks of them can be seen near checkout counters in some grocery stores.

a variation of the stored-value chipcards ... were more sophisticated association chipcards for standard credit operation. the merchant point-of-sale terminal would interact with the chipcards ... and the chipcards could be trusted to tell the merchant POS terminal whether or not to go online, as well as how much available credit limit was available on the card and whether the current transaction was approved or not. these required PIN operation (as countermeasure to lost/stolen cards unauthorized use) and supposedly had lots of security to prevent other forms of fraudulent activity. Point of the card was specifically for security ... but would allow merchant point-of-sale terminals to do offline transactions (to avoid high telco charges) and could batch large number of transactions to be done in one telco transaction at end-of-shift or end-of-day.

There was a large pilot in the US of these cards in the early part of the century. However, the cards interacted with the terminal using "static" authentication data. There turned out that effectively the same terminal compromise that would skim static magstripe data (to create counterfeit magstripe cards) could be used to skim static chipcard authentication data. This then could be used to create counterfeit chipcards that were called YES CARDS; once authenticated the card would always answer "YES" to the following three question: 1) was the correct PIN entered ("YES"), 2) should this be an offline transaction ("YES") and 3) is the transaction within the account credit limit ("YES"). It was not too long later that the pilot disappeared w/o a trace.

I had tried to tell the pilot operators about the vulnerability ... but they apparently had such a myopic focus on the chips ... that they responded by saying they could address the problem by changing the programming in valid chips. The problem was that the compromise wasn't of valid chips ... but a merchant terminal compromise (and changing programming in valid chips had no impact on creation of fraudulent counterfeit YES CARDS).

At the ATM Integrity Task Force meetings ... early part of this century when the YES CARD problem was explained, somebody in the audience made the observation that they managed to spend billions of dollars to prove chipcards are less secure than magstripe cards. The issue is that a countermeasure to counterfeit magstripe card is to deactivate the account (and prevents/blocks future online fraudulent transactions). However for YES CARDS, deactivating the account has no effect, since the merchant terminal doesn't go online until long after the crooks are gone.

old reference (gone 404 but lives on at wayback machine) to YES CARD presentation at cartes2002:
https://web.archive.org/web/20030417083810/http://www.smartcard.co.uk/resources/articles/cartes2002.html

past posts mentioning YES CARDS:
https://www.garlic.com/~lynn/subintegrity.html#yescard

--
virtualization experience starting Jan1968, online at home since Mar1970

Co-existance of z/OS and z/VM on same DASD farm

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@GARLIC.COM (Anne & Lynn Wheeler)
Subject: Re: Co-existance of z/OS and z/VM on same DASD farm
Newsgroups: bit.listserv.ibm-main
Date: 24 May 2012 07:17:05 -0700
phil@VOLTAGE.COM (Phil Smith) writes:
VM/XA MA begat VM/XA SF begat VM/XA SP, which eventually moved to Endicott, and became VM/ESA and then z/VM. The core of VM/XA was actually much better than VM/SP; as a developer I found it much easier to work with.

re:
https://www.garlic.com/~lynn/2012g.html#17 Co-existance of z/OS and z/VM on same DASD farm
https://www.garlic.com/~lynn/2012g.html#19 Co-existance of z/OS and z/VM on same DASD farm
https://www.garlic.com/~lynn/2012g.html#24 Co-existance of z/OS and z/VM on same DASD farm

old email about vm/370 running in XA mode:
https://www.garlic.com/~lynn/2011c.html#email860122
https://www.garlic.com/~lynn/2011c.html#email860123
https://www.garlic.com/~lynn/2011e.html#email870508

the early issue were claims that the resources to bring "migration aid" up to vm370 product level was several orders larger than the resources needed to fix any perceived deficiencies in vm370 (compared to "migration aid").

for little x-over with this thread:
https://www.garlic.com/~lynn/2012g.html#29 24/7/365 appropriateness was Re: IBMLink outages in 2012
https://www.garlic.com/~lynn/2012g.html#30 24/7/365 appropriateness was Re: IBMLink outages in 2012

post from couple years ago about z/VM announcing cluster support:
https://www.garlic.com/~lynn/2009p.html#43 From The Annals of Release No Software Before Its Time

US HONE system had done vm370 cluster (loosely-coupled) & single-system-image support in the late 70s (large number of multiprocessors sharing disk pool) ... US HONE datacenters had been consolidated in Palo Alto in mid-70s (building next door to where FACEBOOK later first moved into) and provided online sales&marketing support (HONE clones sprouted all over the world for world-wide sales&marketing support). In the early 80s, the datacenter was replicated in Dallas, and fall-over/load-balancing was extended across the two geographically separated datacenters. misc. poast posts mentioning HONE
https://www.garlic.com/~lynn/subtopic.html#hone

Prior to US HONE cluster support, vm370 commerical online service bureaus had done their own cluster support including non-disruptive migration of active running users between systems in the complex (not just logon load-balancing and fall-over). This allowed a system to be taken/varied offline for maintenance w/o impacting any users running on the system. misc. past posts mentioning commercial online service
https://www.garlic.com/~lynn/submain.html#timeshare

In the 80s, IBM research had done vm/4341 cluster support with 3088/trotter ... but when they went to release, they were told that they had to convert from their own home grown protocol to SNA/VTAM ... cluster operations that had taken small fraction of a second started taking half a minute or more.

all of that would be disappearing in transition from vm370 base to vmtool/migration-aid base.

with regard to loosely-coupled and SNA/VTAM battles ... my wife had earlier run into the problem when she had been con'ed into going to POK to be in charge of loosely-coupled architecture. She created Peer-Coupled Shared Data architecture while there ... but it saw very little uptake (except for IMS hot-standby) until SYSPLEX ... some past posts
https://www.garlic.com/~lynn/submain.html#shareddata

combination of little uptake and constant wars with the communication group over demands that she use SNA/VTAM for loosely-coupled operation contributed to her not remaining long in the position (there would be periodic temporary truces where it was allowed she could use anything she wanted within the datacenter ... but the communication group "owned" everything that crossed the datacenter walls).

also note in the late 80s, a senior disk engineer had gotten a talked scheduled at the internal, worldwide, annual communication group conference and opened with the statement that the communication group was going to be responsible for the demise of the disk division. the issue that the communication group was protecting their terminal emulation install base ... and the disk division was starting to see drop of sales as data was fleeing the datacenter to more distributed computing friendly platforms. The disk division had come up with a number of solutions for the problem ... but (again) the communication group had strategic ownership for everything that cross the datacenter walls (and would veto the solutions). misc. past posts mentioning terminal emulation paradigm
https://www.garlic.com/~lynn/subnetwork.html#emulation
AMEX, Private Equity, IBM related Gerstner posts
https://www.garlic.com/~lynn/submisc.html#gerstner

this whole situation contributed to the significant dropoff of mainframe use and the company going into the red in early 90s. Reference to a Gerstner's resurrection of IBM ... as well as pointer to review of Gerstner's book "who says elephants can't dance" (in IBM employee forum):
https://www.garlic.com/~lynn/2012f.html#84

--
virtualization experience starting Jan1968, online at home since Mar1970

IBM bans Siri: Privacy risk, or corporate paranoia at its best?

From: lynn@garlic.com (Lynn Wheeler)
Date: 24 May, 2012
Subject: IBM bans Siri: Privacy risk, or corporate paranoia at its best?
Blog: Google+
re:
https://plus.google.com/u/0/102794881687002297268/posts/PfnLC5y16YD
and
https://www.garlic.com/~lynn/2012g.html#31 IBM bans Siri: Privacy risk, or corporate paranoia at its best?
https://www.garlic.com/~lynn/2012g.html#32 IBM bans Siri: Privacy risk, or corporate paranoia at its best?

Nope, however from long ago and far away:
Date: 10/19/81 09:42:07
From: STL
To: distribution list

Hi,

From 2:30 to 4:30 PM in the STL Cafe today (Mon), Bill Donnelly will give a presentation, discussing:

1) DASD Directions and Trends (3380, 3375, MSS, etc.)
2) Storage Products Programming Support

You are welcome to attend ...


... snip ... top of post, old email index

fixing data fleeing datacenter was more about how to make mainframe more friendly for distributed environment ... allowing access to mainframe resident data ... than the actual disk technology.

disclaimer: i was allowed to go across the street and play disk engineer in bldgs. 14&15 ... some past posts
https://www.garlic.com/~lynn/subtopic.html#disk

bldg 14&15 still exist:
http://g.co/maps/zv3p6
... but lots of others have been plowed under.

--
virtualization experience starting Jan1968, online at home since Mar1970

Should IBM allow the use of Hercules as z system emulator?

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 24 May, 2012
Subject: Should IBM allow the use of Hercules as z system emulator?
Blog: Mainframe Experts
re:
http://lnkd.in/EyAnWW

long winded thread here (NASA unplugs last mainframe):
http://lnkd.in/djmeWv

with max. 80processor z196 at @$28M and 50BIPS and IBM has base price for its E5-2600 blade @$1815 and 527BIPS

this has TurboHercules doing emulated 3.2BIPS on old 8way Nehalem ... aka about 10:1 on 30BIPs.
https://en.wikipedia.org/wiki/Hercules_%28emulator%29

In theory, that might result in E5-2600 @ 527BIPS doing emulated 57BIPS (more than 80processor z196 @50BIPS)

IBM recently announced E5-4600 blade ... with twice the processors of E5-2600 ... which potentially then is twice the BIPS ... potentially over 1100BIPS and emulated 110BIPS?

It use to be the first experience was at univ. and IBM had deep educational discounts and large number of educational installations in the 60s. That significantly changed after 23jun69 unbundling announcement, various litigation, etc. In the 80s an attempt was made to come back with IBM ACIS that started out with $300M for universities (with more added later) ... however a lot of that started going for non-mainframe stuff. Project Athena at MIT was joint/equal by ACIS and DEC ... but was non-mainframe;
https://en.wikipedia.org/wiki/Project_Athena

CMU got $50M but also non-mainframe ... CMU mach ... a unix work-a-like microkernel somewhat still survives as Apple operating system ... by way of NeXT.
https://en.wikipedia.org/wiki/Mach_%28kernel%29

BITNET and EARN networking was substantially IBM funded ....
https://en.wikipedia.org/wiki/BITNET
and
https://en.wikipedia.org/wiki/European_Academic_Research_Network
old email about start of EARN:
https://www.garlic.com/~lynn/2001h.html#email840320

for other folklore bits & pieces

before there was ms/dos there was seattle computer,
https://en.wikipedia.org/wiki/MS-DOS
before seattle computer there was cp/m,
https://en.wikipedia.org/wiki/Seattle_Computer_Products
before there was cp/m there was cp67/cms
https://en.wikipedia.org/wiki/CP/M

kildall worked on cp67/cms at npg (gone 404, but lives on at the wayback machine)
https://web.archive.org/web/20071011100440/http://www.khet.net/gmc/docs/museum/en_cpmName.html

npg
https://en.wikipedia.org/wiki/Naval_Postgraduate_School
cp67/cms
https://en.wikipedia.org/wiki/CP/CMS

note that the above mentions (MIT IBM 7094) CTSS is common ancestor to a number of things.

The Palo Alto group was working with both Berkeley (initially on port of BSD unix-work-alike to 370) and UCLA (port of LOCUS unix-work-alike to variety of platforms).

The Austin group was going to use ROMP for Displaywriter follow-on ... when that was canceled they retargeted it for the unix workstation market and got the company that had done the AT&T unix port to the PC for PC/IX, to do one to ROMP that became PC/RT and AIX. The Palo Alto group was then redirected to do their Berkeley BSD port to PC/RT (instead of 370) which was released as AOS. The Palo Alto group then did port of UCLA LOCUS to 370 and 386 which were released as AIX/370 & AIX/386.

--
virtualization experience starting Jan1968, online at home since Mar1970

Hard drives: A bit of progress

Refed: **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 25 May, 2012
Subject: Hard drives: A bit of progress
Blog: IBM co/ex workers independent group
re:
https://www.garlic.com/~lynn/2012g.html#4 Hard drives: A bit of progress

Some of the disk vis-a-vis communication group ... also recently played out in the ibm-main mailing list (originated on BITNET in the 80s):
https://www.garlic.com/~lynn/2012g.html#17
https://www.garlic.com/~lynn/2012g.html#19
https://www.garlic.com/~lynn/2012g.html#24
https://www.garlic.com/~lynn/2012g.html#34

another story about communication trying to preserve its terminal emulation paradigm and fight off the emerging client/server and distributed computing tsunami (and the customers just leaving and going to other platforms):

The workstation division for the PC/RT had PC/AT 16bit bus and for token-ring ... did custom PC/RT 4mbit token-ring card. Then for PC/RT follow-on, the RS/6000 had microchannel bus. The RS/6000 group was told they couldn't do their own cards ... but had to only use PS2 cards (lan, graphics, disk, etc) ... the resulting joke was that (except for few computational applications), the RS/6000 couldn't run any faster than PS2.

The PS2 microchannel 16mbit token-ring card was designed for 300 (or more) machines all sharing common 16mbit doing terminal emulation. The problem was RS/6000 was heavy client/server ... which each client required more LAN bandwidth (than terminal emulation) ... and the server required being able to do the aggregate bandwidth of all its clients. It turns out that the PS2 16mbit token-ring card was so slow ... that the PC/RT 4mbit token-ring had higher per card throughput than the PS2 16mbit token-ring card. Past posts mentioning 801, romp, rios, risc, pc/rt, rs/600, power, power/pc, somerset, etc
https://www.garlic.com/~lynn/subtopic.html#801

This was at a time when we had come up with 3-layer network architecture ... originally for large gov. campus RFI ... but then was out pitching it to customer executives ... and we were taking lots of hits from the communication group. misc. past posts mentioning 3-layer architecture https://www.garlic.com/~lynn/subnetwork.html#3tier

--
virtualization experience starting Jan1968, online at home since Mar1970

Should IBM allow the use of Hercules as z system emulator?

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 25 May, 2012
Subject: Should IBM allow the use of Hercules as z system emulator?
Blog: Mainframe Experts
re:
http://lnkd.in/EyAnWW
and
https://www.garlic.com/~lynn/2012g.html#36

very little Hercules .... TCP/IP is the basis of the modern internet, NSFNET backbone was the operational basis for the modern internet, and CIX was the business basis for the modern internet.

I was working with many of the parties that would be the NSFNET backbone. My HSDT effort internally had T1 and faster links. Some past HSDT posts
https://www.garlic.com/~lynn/subnetwork.html#hsdt

When the NSFNET backbone T1 RFP was released, internal politics prevented bidding. The director of NSF tried to help by writing letter to company 3Apr1986, NSF Director to IBM Chief Scientist and IBM Senior VP and director of Research, copying IBM CEO) (he had comments that what I already had running was at least five years ahead of all RFP responses) ... which just aggravated the internal politics. misc. past email
https://www.garlic.com/~lynn/lhwemail.html#nsfnet

The winning RFP response with RT & AOS ... didn't actually deploy T1 links ... the cards for the RT only ran 440kbits/sec. In order to semi-meet the letter of the RFP ... T1 trunks were used with telco multiplexors (multiple 440kbit links per T1 trunk). I would periodic ridicule that some of the T1 trunks might be at points multiplexed over telco T5 trunks ... allowing them to call it a T5 NSFNET backbone.

There was also a lot of misinformation floating around internally from the communication group that SNA/VTAM could be used for the NSFNET backbone. This was also at the time when the communication group was also floating misinformation in support of getting the internal network converted to SNA/VTAM.

... The argument for AIX/370 not running native was that while the C code and general process operation was straight forward port to 370 (palo alto internally already had it running on Series/1, some motorola 68000 machines and a dec machine or two), FE/CE field support required EREP support for all customers machines it would service and support ... and the resources/effort to add mainframe EREP to AIX/370 was several times larger than the straight porting effort. As a result, AIX/370 became a VM370 virtual machine operation ... and relied on VM370 for the EREP support ... which then led also to some number of AIX370/VM370 shortcuts to improve performance (enormously reduced resources than adding mainframe EREP to AIX370).

One of the reasons for choosing intel E5 chipline over the Intel I7 chipline for Hercules ... is that the E5s have significant amount of RAS added (some of it moved over from Itanium) ... even tho Intel I7 line has significant better price/performance MIPS than the E5 line.

However as mentioned in the NASA thread, IBM base price for E5-2600 blade is $1815 ... benchmarked at 527BIPs but could realize emulated 58BIPS (at 10:1 emulation ratio). That is approx. $31 per mainframe BIPS (the new E5-4600 blade is projected to have better price/performance). That compares to fully configured 80 processor z196 at $28M and 50BIPS ... or $560,000 per mainframe BIPS.

For other drift ... recent ibm-main mailing list thread with post about internal politics over internal VM/SP running/supporting XA:
https://www.garlic.com/~lynn/2012g.html#34

Note that UCLA Locus (base for aix/386 & aix/370) had distributed filesystem, distributed processes and distributed process migration (sort of large superset of what SAA was suppose to achieve). In certain cases, a process could even migrate from aix/370 to aix/386 (with the 370 executable binary image being replaced with the corresponding 386 executable binary imaged).

--
virtualization experience starting Jan1968, online at home since Mar1970

Van Jacobson Denies Averting 1980s Internet Meltdown

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 26 May, 2012
Subject: Van Jacobson Denies Averting 1980s Internet Meltdown
Blog: IETF - The Internet Engineering Task Force
re:
http://lnkd.in/gtsCvz
also Google+
https://plus.google.com/u/0/102794881687002297268/posts/XvJC8feGDkh

Van Jacobson Denies Averting 1980s Internet Meltdown
http://www.wired.com/wiredenterprise/2012/05/van-jacobson/

SIGCOMM '88, Proceedings of the ACM Symposium on Communications Architectures and Protocols, August 16-18, 1988, Stanford, CA, USA. ACM, 1988; Van Jacobson: Congestion avoidance and control. 314-329
http://dl.acm.org/citation.cfm?doid=52324.52356

Same year there was also a paper that slow-start was non-stable in large networks ... lots of intermediate nodes and an objective is to avoid burst of back-to-back packets. Windowing was originally developed to avoid overrunning pre-allocated buffers at the destination. slow-start was an attempt to adapt windowing paradigm to spread out interval between transmitting packets ... w/o needing to directly control the time interval (in the 80s, many of the platforms have very poor time services for implementing interval control). One of the non-stable scenarios was that in large networks, there was ACK-clumping ... returning ACKs could tend to aggregate at intermediate nodes and then arrive at the transmitting node in large clump. This results in opening multiple windows at one time, resulting in transmitting multiple back-to-back packets (exactly what slow-start was suppose to prevent).

We had earlier done rate-based pacing for HSDT and I had included writeup on rate-based bacing for XTP (at the time, I was on the XTP technical advisery board) ... aka xpress transport protocol ... reliable operation that had minimum 3-packet exchange (compared to minimum 7-packet exchange for TCP and 5-packet exchange for VMTP). misc. past posts mentioning XTP
https://www.garlic.com/~lynn/subnetwork.html#xtphsp
and misc. past posts mentioning HSDT https://www.garlic.com/~lynn/subnetwork.html#hsdt

We had also been working with many of the entities that would be involved in the NFSNET T1 Backbone (HSDT already had T1 and faster speed links running, and claim that it was at least one of the reasons that the NSFNET Backbone RFP specified T1). However, when the NSFNET Backbone T1 RFP was released, internal politics prevented us from bidding. The director of NSF tried to help by writing the company a letter 3Apr1986, NSF Director to IBM Chief Scientist and IBM Senior VP and director of Research, copying IBM CEO), but that just aggravated the internal politics (as well as comments like what we already had running was at least five years head of all RFP responses). some old email leading up to NSFNET backbone
https://www.garlic.com/~lynn/lhwemail.html#nsfnet

--
virtualization experience starting Jan1968, online at home since Mar1970

Should IBM allow the use of Hercules as z system emulator?

From: lynn@garlic.com (Lynn Wheeler)
Date: 26 May, 2012
Subject: Should IBM allow the use of Hercules as z system emulator?
Blog: Mainframe Experts
re:
http://lnkd.in/EyAnWW
and
https://www.garlic.com/~lynn/2012g.html#36
https://www.garlic.com/~lynn/2012g.html#38

A little more network drift over in the linkedin IETF group
http://lnkd.in/gtsCvz
also archived
https://www.garlic.com/~lynn/2012g.html#39

And some mainframe network drift ... the original mainframe TCP/IP product was implemented in VS/Pascal (and had none of the buffer length related exploits that have been epidemic in C-language implementations). It did have some throughput issues getting about 44kbytes/sec throughput using nearly 3090 processor. I did the RFC1044 enhancements and in some tuning tests at Cray Research got 1mbyte/sec sustained between Cray and 4341 (aka running at 4341 channel media speed) ... using only modest amount of 4341 processor (possibly 500 times improvement in bytes moved per instruction executed). Some past posts mentioning RFC1044
https://www.garlic.com/~lynn/subnetwork.html#1044

Part of the issue was that communication group SNA/VTAM didn't have any networking layer (to say nothing of internetworking). As a result, the only channel attached boxes were "bridges" (available for use by the product)... i.e. mainframe had to do all the gorp for LAN/MAC addressing ... in the case of TCP/IP ... the mainframe code had to do the IP<->MAC layer. RFC1044 specified support for real channel attached TCP/IP router boxes ... which allowed all the IP<->MAC layer effort being offloaded to the router box (instead of having to be done in mainframe code).

Later the mainframe TCP/IP code was ported to MVS by adding a layer of necessary VM370 function simulation to MVS.

--
virtualization experience starting Jan1968, online at home since Mar1970

VM Workshop 2012

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 26 May, 2012
Subject: VM Workshop 2012
Blog: z/VM
re:
http://lnkd.in/Emfz8Z
and
https://www.garlic.com/~lynn/2012g.html#18 VM Workshop 2012
https://www.garlic.com/~lynn/2012g.html#23 VM Workshop 2012

A little HSDT/internet x-over from (linkedin) IETF (internet standards):
http://lnkd.in/gtsCvz
and also archived here:
https://www.garlic.com/~lynn/2012g.html#39
along with some in network topic drift in mainframe Hercules discussion
http://lnkd.in/EyAnWW
and also archived here
https://www.garlic.com/~lynn/2012g.html#40

I started doing T1 (and faster) link support in 1980 with channel extender support for local 3270 when STL was moving 300 people from the IMS group to offsite/remote bldg (they had tested remote 3270 and found the human factors horrible and totally unacceptable). This evolved into what I called HSDT
https://www.garlic.com/~lynn/subnetwork.html#hsdt

The pressure for the communication group SNA/VTAM to support links faster than 56kbit was increasing ... but they didn't have any such product ... so they generated some amount of mis-information why customers didn't want/need it (before the mid-90s). One such internal report did a survey of 37x5 customers running "fat-pipe" support (i.e. multiple parallel 56kbit links treated as single logical unit), with two, three, four, five, six, etc. The survey showed more than six link fat pipes dropped to zero. What they didn't include was at the time, the tarrif for T1 link was about the same as five or six 56kbit links. Customers needing faster transmission just switch to T1 products from other vendors (quick/superficial survey turned up over 200 such customers).

This was when HSDT was having some custom hardware built on the other side of the pacific. Friday before I was to leave on a visit, the communication group announced an internal "high-speed" discussion group with the following definitions:


low-speed:       <9.6kbits
medium-speed:    19.2kbits
high-speed :     56kbits
very high-speed: 1.5mbits

on Monday morning, in a conference room on the other side of the pacific was the following definitions

low-speed:       <20mbits
medium-speed:    100mbits
high-speed:      200-300mbits
very high-speed: >600mbits

recent reference
https://www.garlic.com/~lynn/2011c.html#40
with these old email reference discussing the earlier communication group announcement
https://www.garlic.com/~lynn/2011c.html#email890731
old email in the same post discussing rate-based pacing
https://www.garlic.com/~lynn/2011c.html#email890801b

--
virtualization experience starting Jan1968, online at home since Mar1970

"25 Years of IBM's OS/2"

From: lynn@garlic.com (Lynn Wheeler)
Date: 27 May, 2012
Subject: "25 Years of IBM's OS/2"
Blog: IBM Historic Computing
re:
https://www.garlic.com/~lynn/2012e.html#61 "25 Years of IBM's OS/2"

some more related network recently in Hercules emulator discussion over in (linkedin) Mainframe Experts
http://lnkd.in/EyAnWW
also archived here
https://www.garlic.com/~lynn/2012g.html#40

and in this (linkedin) z/VM discussion
http://lnkd.in/Emfz8Z
and archived here
https://www.garlic.com/~lynn/2012g.html#41

Other trivia ... old email from somebody in the OS2 group given my name about scheduling
https://www.garlic.com/~lynn/2003f.html#email871124
and followup
https://www.garlic.com/~lynn/2007i.html#email871204 .
https://www.garlic.com/~lynn/2007i.html#email871204b

Boca was distributing material about how expensive clone PCs were ... as part of justifying the price on PS2s. I started posting single unit prices from San Jose Sunday paper and other sources showing clone PCs significantly cheaper than claimed by Boca ... old reference:
https://www.garlic.com/~lynn/2010c.html#email871115
also in this post
https://www.garlic.com/~lynn/2001n.html#79

has prices from 8/26/90 and 9/2/90 ... also has a pieces from article on "MAINFRAME R.I.P", from Forrester, June1990

following post
https://www.garlic.com/~lynn/2001n.html#80

has excerpts from 10Apr89 SJMN article on "chip wars"

and the post after that
https://www.garlic.com/~lynn/2001n.html#81

has several sample PC prices from April, June, and Dec of 1991

--
virtualization experience starting Jan1968, online at home since Mar1970

High Availability on IBM System i

From: lynn@garlic.com (Lynn Wheeler)
Date: 27 May, 2012
Subject: High Availability on IBM System i
Blog: IBM Alumni
We had started the RS/6000 HA/CMP project in the late 80s (while as/400 was still cisc chips; before they moved to power/pc chips). I had coined the terms disaster survivability and geographic survivability when I was out marketing HA/CMP (to differentiate from disaster/recovery) ... and I was also asked to write a section for the corporate continuous availability strategy document. However both Rochester (aka as/400) and POK (mainframe) complained (that they couldn't meet the requirements) and the section got pulled. some past posts on availability
https://www.garlic.com/~lynn/submain.html#available
some past posts on HA/CMP
https://www.garlic.com/~lynn/subtopic.html#hacmp

We were also doing cluster scale-up as part of HA/CMP ... reference to Jan92 cluster scale-up meeting in Ellison's conference room
https://www.garlic.com/~lynn/95.html#13

and old email referencing cluster scale-up activities
https://www.garlic.com/~lynn/lhwemail.html#medusa

however, possibly hrs after the last email mentioned in the above, the cluster scale-up activity got transferred and we were told we couldn't work on anything with more than four processors. also reference in this post from a couple years ago "From The Annals of Release No Software Before Its Time"
https://www.garlic.com/~lynn/2009p.html#43

--
virtualization experience starting Jan1968, online at home since Mar1970

Cartons of Punch Cards

From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Cartons of Punch Cards
Newsgroups: alt.folklore.computers
Date: Sun, 27 May 2012 15:18:34
David Dyer-Bennet <dd-b@dd-b.net> writes:
Thanks for more detailed history of this in Europe and the US than I remembered. (Rest snipped.)

re:
https://www.garlic.com/~lynn/2012g.html#33 Cartons of Punch Cards

late 80s we had started ha/cmp product
https://www.garlic.com/~lynn/subtopic.html#hacmp

out marketing, I coined the terms "disaster suvivability" and geographic survivability (to differentiate from disaster/recover). I also got asked to write a section for the corporate continuous availability strategy document, but both Rochester (as/400) and POK (mainframes) complained (that they couldn't meet the requirements) the the section got pulled.
https://www.garlic.com/~lynn/submain.html#available

We were also doing cluster scale-up as part of HA/CMP ... reference to Jan92 cluster scale-up meeting in Ellison's conference room
https://www.garlic.com/~lynn/95.html#13

and old email referencing cluster scale-up activities
https://www.garlic.com/~lynn/lhwemail.html#medusa

however, possibly only hrs after the last email mentioned in the above, the cluster scale-up activity got transferred and we were told we couldn't work on anything with more than four processors. also reference in this post from a couple years ago "From The Annals of Release No Software Before Its Time"
https://www.garlic.com/~lynn/2009p.html#43

in any case, the transfer of cluster scale-up significantly contributed to decision to leave later in 1992.

the first stored-value/gift magstripe card was done in the mid-90s (a number of institutions would logo them) ... swipe at existing magstripe point-of-sale terminals and at the processing backends the transaction would get routed to a new dataprocessing system. This new system was a "high-availability" system from a different vendor (aka not our HA/CMP). There was major failure after the first couple months and we got brought into audit what went wrong (one of the consequences of the failure was that the account balance was "lost" and recovery resulted in all accounts being reset to their max possible value).

The start of the review process was meeting with the vendor ... and the VP of the business unit started out with a presentation that appeared to be almost word-for-word something I had written a couple years earlier (for HA/CMP). It turns out failure was a convoluted combination of events. There was a storage bus failure which got replaced ... but there was an oversite and the system configuration data wasn't updated with the information about the replaced component. As a result, only one half of the mirrored disks were being read/written (and their mirrors were being ignored). At some later time a (supposedly) mirrored disk failed ... but it turns out its replicated copy wasn't being updated (because of the missed step in updating the system configuration data) and therefor was several weeks stale.

--
virtualization experience starting Jan1968, online at home since Mar1970

Fareed Zakaria

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 27 May, 2012
Subject: Fareed Zakaria
Blog: Facebook
Fareed Zakaria
http://globalpublicsquare.blogs.cnn.com/category/from-fareed/

He just had an interview with Simpson & Bowles ... where they mentioned that the only thing they do is mathematics. Congress allowed the fiscal responsibility act to expire in 2002 and started going crazy destroying baseline balanced budget that would have retired all federal debt by 2010. Comptroller General (head of GAO) would included in speeches that nobody in congress was capable of (even) middle school arithmetic (for what they had started doing to the budget)

CBO report has congress last decade cutting tax revenues by $6T at the same time increasing spending by $6T (for $12T budget gap) compared to baseline (most of it after they allowed the fiscal responsibility act to expire in 2002)

recent posts referring to congress incapable of middle school arithmetic
https://www.garlic.com/~lynn/2012.html#6 We are on the brink of a historic decision [referring to defence cuts]
https://www.garlic.com/~lynn/2012d.html#36 McCain calls for U.S.-led airstrikes in Syria
https://www.garlic.com/~lynn/2012f.html#61 Zakaria: by itself, Buffett rule is good
https://www.garlic.com/~lynn/2012f.html#68 'Gutting' Our Military
https://www.garlic.com/~lynn/2012f.html#81 The Pentagon's New Defense Clandestine Service
https://www.garlic.com/~lynn/2012g.html#6 Adult Supervision

other recent posts referring to $12T budget gap:
https://www.garlic.com/~lynn/2012c.html#50 They're Trying to Block Military Cuts
https://www.garlic.com/~lynn/2012c.html#52 PC industry is heading for more change
https://www.garlic.com/~lynn/2012c.html#53 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#42 China's J-20 Stealth Fighter Is Already Doing A Whole Lot More Than Anyone Expected
https://www.garlic.com/~lynn/2012d.html#46 Is Washington So Bad at Strategy?
https://www.garlic.com/~lynn/2012d.html#53 "Scoring" The Romney Tax Plan: Trillions Of Dollars Of Deficits As Far As The Eye Can See
https://www.garlic.com/~lynn/2012d.html#60 Memory versus processor speed
https://www.garlic.com/~lynn/2012e.html#25 We are on the brink of historic decision [referring to defence cuts]
https://www.garlic.com/~lynn/2012e.html#40 Who Increased the Debt?
https://www.garlic.com/~lynn/2012e.html#58 Word Length
https://www.garlic.com/~lynn/2012f.html#31 Rome speaks to us. Their example can inspire us to avoid their fate
https://www.garlic.com/~lynn/2012f.html#88 Defense acquisitions are broken and no one cares

--
virtualization experience starting Jan1968, online at home since Mar1970

Why America Is Slouching Towards Third World Status

Refed: **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 27 May, 2012
Subject: Why America Is Slouching Towards Third World Status
Blog: Facebook
Why America Is Slouching Towards Third World Status
http://www.businessinsider.com/america-slouching-towards-third-world-status-2012-5

washington news will periodically refer to congress as Kabuki Theater ... note 1603-1629:
https://en.wikipedia.org/wiki/Kabuki

... I've also seen reports which claim that congressmen is the profession with the highest percentage of convicted felons.

recent posts mentioning congress as Kabuki theater:
https://www.garlic.com/~lynn/2012d.html#16 IBM cuts more than 1,000 U.S. Workers
https://www.garlic.com/~lynn/2012d.html#36 McCain calls for U.S.-led airstrikes in Syria
https://www.garlic.com/~lynn/2012d.html#61 Why Republicans Aren't Mentioning the Real Cause of Rising Prices at the Gas Pump
https://www.garlic.com/~lynn/2012e.html#58 Word Length
https://www.garlic.com/~lynn/2012e.html#88 Developing a Disruptive Mindset
https://www.garlic.com/~lynn/2012f.html#15 Born Fighting
https://www.garlic.com/~lynn/2012f.html#17 Let the IRS Do Your Taxes, Really
https://www.garlic.com/~lynn/2012f.html#25 Time to competency for new software language?
https://www.garlic.com/~lynn/2012f.html#31 Rome speaks to us. Their example can inspire us to avoid their fate

--
virtualization experience starting Jan1968, online at home since Mar1970

How Selecting Voters Randomly Can Lead to Better Elections

Refed: **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 28 May, 2012
Subject: How Selecting Voters Randomly Can Lead to Better Elections
Blog: Facebook
How Selecting Voters Randomly Can Lead to Better Elections
http://www.wired.com/opinion/2012/05/st_essay_voting/

The equivalent about powerful interests with undo influence survives ... enormous lobbying results in congress being the most corrupt institution on earth. Starts with the loopholes in the 72,000 page tax code (that just size/complexity is enormous cost; claims eliminating all loopholes and cutting tax code to 400 pages could gain 5-6% in GDP) ... but extends to MICC and several other special interests. Alternative to use technology for random sampling ... use technology for making all aspects transparent and visible

Early in the days of the current congress, some hypocrisy showing in local interview, the majority leader bragged about putting some bright new members on the financial committee because it is those committee members that get the largest funds (from financial lobbyists) and its enormous contributions from lobbyists that help assure re-election.

misc. past posts mentioning taxcode
https://www.garlic.com/~lynn/2009e.html#53 Are the "brightest minds in finance" finally onto something?
https://www.garlic.com/~lynn/2009e.html#83 Architectural Diversity
https://www.garlic.com/~lynn/2009h.html#20 China's yuan 'set to usurp US dollar' as world's reserve currency
https://www.garlic.com/~lynn/2009i.html#13 64 Cores -- IBM is showing a prototype already
https://www.garlic.com/~lynn/2010d.html#49 search engine history, was Happy DEC-10 Day
https://www.garlic.com/~lynn/2010k.html#58 History--automated payroll processing by other than a computer?
https://www.garlic.com/~lynn/2010o.html#59 They always think we don't understand
https://www.garlic.com/~lynn/2011i.html#20 Happy 100th Birthday, IBM!
https://www.garlic.com/~lynn/2011k.html#18 What Uncle Warren doesn't mention
https://www.garlic.com/~lynn/2011l.html#68 computer bootlaces
https://www.garlic.com/~lynn/2011n.html#80 A Close Look at the Perry Tax Plan
https://www.garlic.com/~lynn/2012e.html#8 America needs a 2-page tax code

--
virtualization experience starting Jan1968, online at home since Mar1970

Owl: China Swamps US Across the Board -- Made in China Computer Chips Have Back Doors, 45 Other "Ways & Means" Sucking Blood from US

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 28 May, 2012
Subject: Owl: China Swamps US Across the Board -- Made in China Computer Chips Have Back Doors, 45 Other "Ways & Means" Sucking Blood from US
Blog: Facebook
Owl: China Swamps US Across the Board -- Made in China Computer Chips Have Back Doors, 45 Other "Ways & Means" Sucking Blood from US
http://www.phibetaiota.net/2012/05/owl-china-swamps-us-across-the-board-made-in-china-computer-chips-have-back-doors-45-other-chinese-ways-means-of-sucking-blood-from-the-us-corpse/

one of the "ways" from the article:
#10 According to ABC News, major road and bridge projects all over the United States are being built by Chinese companies.

... snip ...

a quote from Volcker in "Confidence Men" pg.290:
Well, I said, 'The trouble with the United States recently is we spent several decades not producing many civil engineers and producing a huge number of financial engineers. And the result is s**tty bridges and a s**tty financial system!'

... snip ...

past posts mentioning "Confidence Men":
https://www.garlic.com/~lynn/2012.html#17 What's your favorite quote on "accountability"?
https://www.garlic.com/~lynn/2012.html#21 Zombie Banks
https://www.garlic.com/~lynn/2012.html#44 Who originated the phrase "user-friendly"?
https://www.garlic.com/~lynn/2012.html#47 Avoiding a lost decade
https://www.garlic.com/~lynn/2012.html#48 Fed's image tarnished by newly released documents
https://www.garlic.com/~lynn/2012.html#72 Chris Dodd's SOPA crusading
https://www.garlic.com/~lynn/2012b.html#43 Where are all the old tech workers?
https://www.garlic.com/~lynn/2012c.html#2 Occupy the SEC (Securities & Exchange Commission)
https://www.garlic.com/~lynn/2012c.html#5 Too big not to fail
https://www.garlic.com/~lynn/2012c.html#19 Occupy the SEC Pitches An Extreme Makeover of Wall Street
https://www.garlic.com/~lynn/2012c.html#63 The Economist's Take on Financial Innovation
https://www.garlic.com/~lynn/2012f.html#13 The White House and Mortgage Fraud: So Far It's All Talk, No Action
https://www.garlic.com/~lynn/2012f.html#66 Predator GE: We Bring Bad Things to Life
https://www.garlic.com/~lynn/2012f.html#67 Cartons of Punch Cards
https://www.garlic.com/~lynn/2012f.html#83 Why Can't Obama Bring Wall Street to Justice?
https://www.garlic.com/~lynn/2012g.html#9 JPM LOSES $2 BILLION USD!
https://www.garlic.com/~lynn/2012g.html#16 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012g.html#30 24/7/365 appropriateness was Re: IBMLink outages in 2012

--
virtualization experience starting Jan1968, online at home since Mar1970

Mainframes Warming Up to the Cloud

Refed: **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 28 May, 2012
Subject: Mainframes Warming Up to the Cloud
Blog: MainframeZone
re:
http://lnkd.in/P2J8fg

old email on the subject from 1985 ... mixing non-mainframe and mainframe clusters in the same cabinets:
https://www.garlic.com/~lynn/2007d.html#email850315

I was also doing this stuff with organizations leading up to NSFNET backbone (tcp/ip is the technology basis for the modern internet, NSFNET backbone was the operational basis for the modern internet, and CIX was the business basis for the modern internet) ... and had conflict with presentation to director of NSF and internal meeting on mixed processor clusters

other email from just before on trying to resolve the meeting conflict
https://www.garlic.com/~lynn/2011b.html#email850312 .
https://www.garlic.com/~lynn/2011b.html#email850313 .
https://www.garlic.com/~lynn/2011b.html#email850314 .

older email (in the same post as above)
https://www.garlic.com/~lynn/2011b.html#email830916

it was 1jan1983 the great switchover from host/IMP protocol to internetworking protocol.

IBM sponsored BITNET (using similar technology to that used in the internal network)
https://www.garlic.com/~lynn/subnetwork.html#bitnet

ARPANET was quiet restrictive in who got IMPs and allowed to connect ... one of the reasons that the internal network was larger than the arpanet/internet from just about the beginning until possibly late 85 or early 86.

CSNET was being sponsored as alternative to ARPANET for educational institutions that had difficulty getting permission for ARPANET connection.

One of the reason that internet passed the size of the internal network was that the communication group was aggressively fighting to preserve the terminal emulation paradigm and block client/server and distributed computing ... while internet was starting to show up with all kinds of peer-to-peer networking nodes.
https://www.garlic.com/~lynn/subnetwork.html#emulation

However, it turns out that the IBM 4300s starting in late 70s through the early 80s were the leading edge for the distributed computing tidal wave. old 4300 email from the period
https://www.garlic.com/~lynn/lhwemail.html#43xx

--
virtualization experience starting Jan1968, online at home since Mar1970

Cartons of Punch Cards

Refed: **, - **, - **, - **, - **, - **
From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Cartons of Punch Cards
Newsgroups: alt.folklore.computers
Date: Mon, 28 May 2012 13:06:34
"Charlie Gibbs" <cgibbs@kltpzyxm.invalid> writes:
Automation has reduced the cost per attempt; a computer is given a list of numbers to dial and works through it until it detects a voice. That way an agent isn't notified until there's a real live person on the line.

it is callcenter version of wardialing from a couple decades ago ... computers programmed to dial every number in exchange looking for modems ... then trying to recognize what kind of system and attempting a login.

statistics on wardialing from the period found significant number of professional (doctor, dentist, lawyer) offices with PC-based business systems (which didn't bother to use any authentication mechanism at all).

past posts mentioning wardialing:
https://www.garlic.com/~lynn/2002b.html#38 "war-dialing" etymology?
https://www.garlic.com/~lynn/2002b.html#41 "war-dialing" etymology?
https://www.garlic.com/~lynn/2003g.html#56 OT What movies have taught us about Computers
https://www.garlic.com/~lynn/2003p.html#32 Mainframe Emulation Solutions
https://www.garlic.com/~lynn/2004p.html#40 Computers in movies
https://www.garlic.com/~lynn/2006f.html#7 The Pankian Metaphor
https://www.garlic.com/~lynn/2006m.html#38 Computers in the movies
https://www.garlic.com/~lynn/2007v.html#12 What do YOU call the # sign?
https://www.garlic.com/~lynn/2008m.html#73 Blinkylights
https://www.garlic.com/~lynn/2010n.html#76 Mainframe hacking?

--
virtualization experience starting Jan1968, online at home since Mar1970

Telephones--private networks, Independent companies?

Refed: **, - **, - **, - **
From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Telephones--private networks, Independent companies?
Newsgroups: alt.folklore.computers
Date: Mon, 28 May 2012 16:15:52
Joe Pfeiffer <pfeiffer@cs.nmsu.edu> writes:
NMSU has had that scheme since long before I started there; my office is (575) 646-1605 from off campus, 6-1605 on campus. It's been through several generations of equipment and vendors; currently using an Ericsson setup. I was pretty disappointed when campus made the transition from analog to digital before I had broadband at home; I couldn't have a modem on the workstation in my office any more (there are still a few lines running faxes that I think are analog -- but I wouldn't be surprised to learn there was actually some sort of modem sitting by the fax machine...).

the corporae tie-line used to be similar except corporate was large enuf ... different locations required the 8-nnl-llll ... l-llll tended to be local ... and 8-nn then was needed for different location. 9- was needed for outside line. There was also different mapping from outside to inside.

this recent post about vm workshop this summer (40th anniv of vm370)
https://www.garlic.com/~lynn/2012g.html#18

has old email from 1987 that also mentions the 1987 vm workshop
https://www.garlic.com/~lynn/2012g.html#email870220

and contains this email signature line:
.... Lynn Wheeler, K83/801, ALM-RES, 457-2680(408-927)/427-4536(408-997)
CSNET/ARPANET: Wheeler@IBM.COM


... snip ...

Research had moved up the hill to the new Almaden facility and I had an office there with 8-457-2680 or outside 408-927-2680, i also had a number of offices and labs in Los Gatos lab which was 8-427-4536 or outside 408-997-4536.

for other reference on VM370 40yr anniv, CP67 44yr anniv in IBM Historic Computing
https://www.garlic.com/~lynn/2012g.html#25

I mentioned that last week, I also got asked to help with ATM history (automated teller machine) ... also "40th anniv". The magstripe standard (used by credit, debit & gift cards) had been managed out of the Los Gatos lab between the mid-60s and the mid-70s. Los Gatos lab had started work on ATM machines circa 1970 ... however by the time that I got offices in the lab, all the ATM work had moved elsewhere (although some of the people were still at the lab).

--
virtualization experience starting Jan1968, online at home since Mar1970

Wardialing statistics( was: "Cartons of Punch Cards" )

Refed: **, - **, - **, - **, - **
From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Wardialing statistics( was: "Cartons of Punch Cards" )
Newsgroups: alt.folklore.computers
Date: Mon, 28 May 2012 20:24:16
Freddy1X <freddy1X@indyX.netx> writes:
I have to ask about how you ( a-hem ) compiled those statistics.

re:
https://www.garlic.com/~lynn/2012g.html#50 Cartons of Punch Cards

it wasn't me, I was at presentation by somebody that had dialed every number of every area code in the bay area ... supposedly something like 3% of the numbers (don't remember whether it was all numbers, or valid numbers, or numbers that answered) had some sort of modem. past reference
https://www.garlic.com/~lynn/2010n.html#76 Mainframe hacking?

this was decades ago ... one of the wide-open systems not requiring any authentication, was one of the bay area 911 systems ... sort of like current day (apparently) wide-open scada systems on the internet.

--
virtualization experience starting Jan1968, online at home since Mar1970

The secret's out for secure chip design

Refed: **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 28 May, 2012
Subject: The secret's out for secure chip design
Blog: Google+
re:
https://plus.google.com/u/0/102794881687002297268/posts/fzS7g7rABmY

The secret's out for secure chip design
http://www.zdnet.com/news/security-threats/2012/05/28/the-secrets-out-for-secure-chip-design-40155296/

from above:
The story that Cambridge researchers have identified a back door in a military chip made in China is stirring up a lot of interest, verging on the sensationalist. It's too soon to say whether that story is true, but the Cambridge security group has a superb track record in finding and disclosing this level of vulnerability, and it's been accepted for a peer-reviewed conference. For now, it's safe to assume that what they say they found, they found.

... snip ...

a decade ago I was asked to look at the problem and then gave a slightly related presentation the Intel Developer Forum ... from long ago and far way (gone 404 but lives on at the wayback machine):
https://web.archive.org/web/20011109072807/http://www.intel94.com/idf/spr2001/sessiondescription.asp?id=stp%2bs13
(if it gives you the welcome page, click on the "Impatient!" field)

the issue at the time was copy-chips being substituted for valid chips ... now it appears that they are buying directly from the copy-chip makers

My presentation was in Assurance panel in the TPCA track at IDF. Appropriate software in conjunction with TPM chip is suppose to preclude computer compromises. The guy running TPM chip effort was in the front row, so I kidded him that it was nice after 2yrs for the TPM chip to start looking more like chip I had designed. He quiped back that I didn't have a committee of 200 helping me design a chip

some more:
http://blog.erratasec.com/2012/05/bogus-story-no-chinese-backdoor-in.html
and original
http://www.cl.cam.ac.uk/~sps32/sec_news.html#Assurance

... as an aside, the chip I talked about in the TPCA track at IDF had no mechanisms for loading/changing anything

--
virtualization experience starting Jan1968, online at home since Mar1970

Open source and the National Security Agency, together again

From: lynn@garlic.com (Lynn Wheeler)
Date: 28 May, 2012
Subject: Open source and the National Security Agency, together again
Blog: Google+
re:
https://plus.google.com/u/0/102794881687002297268/posts/SgSBkWkPLoj

Open source and the National Security Agency, together again
http://www.zdnet.com/blog/open-source/open-source-and-the-national-security-agency-together-again/11079

reference to long ago and far away (gone 404 but lives on at the wayback machine)
https://web.archive.org/web/20090117083033/http://www.nsa.gov/research/selinux/list-archive/0409/8362.shtml

I was undergraduate at the time and making lots of operating system changes and the vendor would periodic suggest stuff. I didn't know about these organizations at the time but in retrospect, some of the requests may have originated from them. cp67 was announced 44yrs ago, the follow-on, vm370 is 40yrs old this year.

Note: all software used to be "open source" ... it was gov. & other litigation that led to the 23Jun1969 unbundling announcement and starting to charge for software. misc. past posts mentioning unbundling
https://www.garlic.com/~lynn/submain.html#unbundle

--
virtualization experience starting Jan1968, online at home since Mar1970

U.S. Needs a National Safety Board for Financial Crashes

Refed: **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 28 May, 2012
Subject: U.S. Needs a National Safety Board for Financial Crashes
Blog: Google+
re:
https://plus.google.com/u/0/102794881687002297268/posts/TmKNQyDitUm

U.S. Needs a National Safety Board for Financial Crashes
http://www.bloomberg.com/news/2012-05-27/u-s-needs-a-national-safety-board-for-financial-crashes.html

from above:
There are growing concerns that the regulatory bodies overseeing the financial sector are incapable of understanding, preventing or even properly investigating excessive risk taking that threatens to ruin the economy.

... snip ...

from baseline over on facebook. note my analogy for sometime regarding the regulatory agencies has been the 3-monkeys:
https://en.wikipedia.org/wiki/Three_wise_monkeys

A couple weeks ago, CBS 60mins had Lehman segment and auditors, SEC, and Federal Reserve all had people on-site at Lehman ... but apparently just sitting on the sidelines watching it all happen.

misc. past posts mentioning 3-monkeys:
https://www.garlic.com/~lynn/2012f.html#87 How do you feel about the fact that India has more employees than US?
https://www.garlic.com/~lynn/2012f.html#91 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012g.html#20 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012g.html#55 U.S. Needs a National Safety Board for Financial Crashes

--
virtualization experience starting Jan1968, online at home since Mar1970

Why Hasn't The Government Prosecuted Anyone For The 2008 Financial recession?

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 28 May, 2012
Subject: Why Hasn't The Government Prosecuted Anyone For The 2008 Financial recession?
Blog: Financial Crime Risk, Fraud and Security
U.S. Needs a National Safety Board for Financial Crashes
http://www.bloomberg.com/news/2012-05-27/u-s-needs-a-national-safety-board-for-financial-crashes.html

my analogy for sometime regarding the regulatory agencies has been the 3-monkeys:
https://en.wikipedia.org/wiki/Three_wise_monkeys

A couple weeks ago, CBS 60mins had Lehman segment and auditors, SEC, and Federal Reserve all had people on-site at Lehman ... but apparently just sitting on the sidelines watching it all happen.

Jan2009 I was asked to HTML'ize the Pecora hearings (30s congressional hearings into crash of '29; had been scanned the fall of 2008 at Boston Public Library) with extensive internal x-referencing and indexing along with URLs between what happened in '29 and what happened this time (some anticipation that the new congress would have the appetite to do something). After a couple months, I got a call that it wouldn't be needed after all (with implication that wallstreet was spreading huge amounts of money around capital hill).

"Confidence Men" has the Obama's economic "A-team" instrumental in getting him elected ... but they were going to hold accountable those responsible ... and the "B-team" was appointed instead (many that had participated in the economic mess).

and with regard to Dodd-Frank, "Confidence Men", pg430:
But they were fighting on too many fronts. Carl Levin of Michigan and Jeff Merkley of Oregon had discovered that Dodd had discreetly gutted the Volcker Rule, and the two set to work trying to counteract Dodd's efforts.

... snip ...

past posts mentioning Pecora:
https://www.garlic.com/~lynn/2012b.html#5 The round wheels industry is heading for collapse
https://www.garlic.com/~lynn/2012b.html#56 What's the most interesting thing you do in your non-work life?
https://www.garlic.com/~lynn/2012b.html#95 Bank of America Fined $1 Billion for Mortgage Fraud
https://www.garlic.com/~lynn/2012c.html#31 US real-estate has lost $7T in value
https://www.garlic.com/~lynn/2012c.html#37 US real-estate has lost $7T in value
https://www.garlic.com/~lynn/2012c.html#39 Greek knife to Wall Street
https://www.garlic.com/~lynn/2012c.html#52 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#32 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#69 Memory versus processor speed
https://www.garlic.com/~lynn/2012g.html#7 Adult Supervision
https://www.garlic.com/~lynn/2012g.html#28 REPEAL OF GLASS-STEAGALL DID NOT CAUSE THE FINANCIAL CRISIS - WHAT DO YOU THINK?

--
virtualization experience starting Jan1968, online at home since Mar1970

VM Workshop 2012

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 29 May, 2012
Subject: VM Workshop 2012
Blog: z/VM
re:
http://lnkd.in/Emfz8Z
and
https://www.garlic.com/~lynn/2012g.html#18 VM Workshop 2012
https://www.garlic.com/~lynn/2012g.html#23 VM Workshop 2012
https://www.garlic.com/~lynn/2012g.html#41 VM Workshop 2012

more T1 lore topic drift ...

I had also gotten involved with an outside organization to take a NCP/VTAM emulator done on Series/1 and turn it out as an IBM product (along with migrating to RIOS, risc chips being developed for RS/6000). This is part of presentation that I made at fall 1986 SNA architecture review board meeting in Raleigh
https://www.garlic.com/~lynn/99.html#67
Refererence to presentation made at COMMON/Series1 conference:
https://www.garlic.com/~lynn/99.html#70

Then what unfolded can only be described as truth is stranger than fiction ... how the communication group managed to shutdown the activity.

The Series/1 had spoofed 3725NCP channel interface to VTAM and simulated all traffic as cross-domain ... aka being owned by some other VTAM; the ruse allowed the implementation to then operate with full peer-to-peer network (tunneling VTAM traffic through a real network).

The communication group also had a great deal of mis-information as part of justifying conversion of the internal network to SNA/VTAM
https://www.garlic.com/~lynn/2006x.html#email870302
https://www.garlic.com/~lynn/2011.html#email870306

that was going on in parallel with claims about being able to support the NSFNET T1 backbone with SNA/VTAM
https://www.garlic.com/~lynn/2006w.html#email870109

old email referencing NSFNET
https://www.garlic.com/~lynn/lhwemail.html#nsfnet
past posts referencing NSFNET backbone
https://www.garlic.com/~lynn/subnetwork.html#nsfnet

also related to recent IETF comment about ACK-pacing ...
https://www.garlic.com/~lynn/2012g.html#39

the customer pressure on communication group for at least T1, kept increasing ... and somewhat as stop-gap they came out with 3737 for SNA/VTAM; it was a bunch of Motorola 68k processors and lots of buffer memory with a small VTAM subset for spoofing host VTAM (somewhat analogous to above mentioned Series/1 implementation, but just enough to do immediate ACKs for point-to-point link). The immediate ACKS (as if data had already arrived at remote end) ... was able to mask the SNA/VTAM throughput bottleneck with getting full media transmission on higher speed links (otherwise link spent much of its time idle while SNA/VTAM waited for the remote-end ACKs). misc. old email discussing 3737:
https://www.garlic.com/~lynn/2011g.html#email880130 .
https://www.garlic.com/~lynn/2011g.html#email880606 .
https://www.garlic.com/~lynn/2011g.html#email881005

--
virtualization experience starting Jan1968, online at home since Mar1970

Cartons of Punch Cards

From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Cartons of Punch Cards
Newsgroups: alt.folklore.computers
Date: Wed, 30 May 2012 08:41:57
"Charles Richmond" <numerist@aquaporin4.com> writes:
I *think* that you are mistaken, Mr. Scheible. The Library of Congress stopped using cards around the early 1980's. Everything is on computer now. All the old library cards in the LOC were filmed on 16mm film stock so they could be resurrected if desired. Or refererenced if there was some question about the computer data. Then the cards themselves were destroyed. But I think new acquisitions have *no* library cards anymore.

the old physical cards aren't in the catalog room (computer terminals) but ... at least a year ago when i had tour ... they were in closed off rooms

--
virtualization experience starting Jan1968, online at home since Mar1970

Why Hasn't The Government Prosecuted Anyone For The 2008 Financial recession?

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 31 May, 2012
Subject: Why Hasn't The Government Prosecuted Anyone For The 2008 Financial recession?
Blog: Financial Crime Risk, Fraud and Security
re:
https://www.garlic.com/~lynn/2012g.html#56 Why Hasn't The Government Prosecuted Anyone For The 2008 Financial recession?

#1 on times list of those responsible:
http://content.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877339,00.html
#2 on times list
http://content.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877330,00.html
#3 on times list:
http://content.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877331,00.html
#4 on times list
http://www.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877323,00.html

Weill is well down the list even tho he was the force behind the repeal of Glass-Steagall
http://www.pbs.org/wgbh/pages/frontline/shows/wallstreet/weill/

#2 on the list for actively de-regulation and opposing new regulations

#3 & #4 on the list for failing to enforce any regulations that existed. #3 even giving Weill exemption after take-over of Citi (in violation of Glass-Steagall) while Weill worked to get Glass-Steagall repealed.

#4 didn't do anything about Enron &/or Worldcom. Congress passed Sarbanes-Oxley ... in theory to strengthen #4 ability to do something (although if they already weren't doing anything, not doing anything about SOX wouldn't make a lot of change). Possibly even GAO didn't think that #4 was doing anything and started doing reports of public company fraudulent financial filings ... even showing uptic after Sarbanes-Oxley:
http://www.gao.gov/products/GAO-03-395R .
http://www.gao.gov/products/GAO-06-678 .
https://www.gao.gov/products/gao-06-1079sp

in theory SOX would have all the senior executives doing jail time.

more with respect to #2, deregulation, enron, worldcom, AIG:

Gramm and the 'Enron Loophole'
http://www.nytimes.com/2008/11/17/business/17grammside.html

from above:
Enron was a major contributor to Mr. Gramm's political campaigns, and Mr. Gramm's wife, Wendy, served on the Enron board, which she joined after stepping down as chairwoman of the Commodity Futures Trading Commission.

... snip ...

and an older article: Phil Gramm's Enron Favor
https://web.archive.org/web/20080711114839/http://www.villagevoice.com/2002-01-15/news/phil-gramm-s-enron-favor/

from above:
A few days after she got the ball rolling on the exemption, Wendy Gramm resigned from the commission. Enron soon appointed her to its board of directors, where she served on the audit committee, which oversees the inner financial workings of the corporation. For this, the company paid her between $915,000 and $1.85 million in stocks and dividends, as much as $50,000 in annual salary, and $176,000 in attendance fees,

... snip ...

and more #3 responsible, Greenspan Slept as Off-Books Debt Escaped Scrutiny
http://www.bloomberg.com/apps/news?pid=20601109&refer=home&sid=aYJZOB_gZi0I

from above:
That same year Greenspan, Treasury Secretary Robert Rubin and SEC Chairman Arthur Levitt opposed an attempt by Brooksley Born, head of the Commodity Futures Trading Commission, to study regulating over-the-counter derivatives. In 2000, Congress passed a law keeping them unregulated.

... snip ...

Brooksley was fairly quickly replaced by Wendy Gramm as head of Commodity Futures Trading Commission, and then after her husband got the regulation exemption in Congress, Wendy resigns to join Enron's board.

More recent about GAO not thinking SEC doing much ... not just Sarbanes-Oxley

GAO calls on SEC to beef up Finra oversight; Report critical of executive compensation, operations
http://www.investmentnews.com/article/20120531/FREE/120539980

past posts mentioning GAO & reports of public company fraudulent filings
https://www.garlic.com/~lynn/2012.html#1 The war on terabytes
https://www.garlic.com/~lynn/2012.html#18 SEC v. Citigroup, How to Avoid (Greater) Disaster
https://www.garlic.com/~lynn/2012.html#26 What's your favorite quote on "accountability"?
https://www.garlic.com/~lynn/2012.html#70 Regulatory Agency logo
https://www.garlic.com/~lynn/2012b.html#19 "Buffett Tax" and truth in numbers
https://www.garlic.com/~lynn/2012b.html#44 What's the most interesting thing you do in your non-work life?
https://www.garlic.com/~lynn/2012b.html#53 Can America Lead the World's Fight Against Corruption?
https://www.garlic.com/~lynn/2012b.html#54 The New Age Bounty Hunger -- Showdown at the SEC Corral
https://www.garlic.com/~lynn/2012b.html#87 The Benefit and The Burden
https://www.garlic.com/~lynn/2012c.html#0 New theory of moral behavior may explain recent ethical lapses in banking industry
https://www.garlic.com/~lynn/2012c.html#13 Study links ultrafast machine trading with risk of crash
https://www.garlic.com/~lynn/2012c.html#31 US real-estate has lost $7T in value
https://www.garlic.com/~lynn/2012c.html#45 Fannie, Freddie Charge Taxpayers For Legal Bills
https://www.garlic.com/~lynn/2012c.html#54 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#5 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#10 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#12 Gordon Gekko Says
https://www.garlic.com/~lynn/2012d.html#16 IBM cuts more than 1,000 U.S. Workers
https://www.garlic.com/~lynn/2012d.html#39 Fannie and Freddie must go - here's how
https://www.garlic.com/~lynn/2012e.html#30 Senators Who Voted Against Ending Big Oil Tax Breaks Received Millions From Big Oil
https://www.garlic.com/~lynn/2012e.html#57 speculation
https://www.garlic.com/~lynn/2012f.html#66 Predator GE: We Bring Bad Things to Life
https://www.garlic.com/~lynn/2012f.html#74 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012f.html#84 How do you feel about the fact that India has more employees than US?
https://www.garlic.com/~lynn/2012f.html#87 How do you feel about the fact that India has more employees than US?
https://www.garlic.com/~lynn/2012f.html#91 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012g.html#6 Adult Supervision

--
virtualization experience starting Jan1968, online at home since Mar1970

Singer Cartons of Punch Cards

Refed: **, - **, - **, - **, - **, - **, - **
From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Singer Cartons of Punch Cards
Newsgroups: alt.folklore.computers
Date: Thu, 31 May 2012 17:48:05
Patrick Scheible <kkt@zipcon.net> writes:
We have a more pro-big-business climate now that doesn't see monopolies as such a bad thing.

I remember reading "Robber Barons" in high-school ... this past decade seems that it has to come around at least every hundred years.

recent posts in (linkedin) Financial Crime Risk, Fraud and Security discussion: Why Hasn't The Government Prosecuted Anyone For The 2008 Financial recession?
https://www.garlic.com/~lynn/2012g.html#56
https://www.garlic.com/~lynn/2012g.html#59

--
virtualization experience starting Jan1968, online at home since Mar1970

Why Hasn't The Government Prosecuted Anyone For The 2008 Financial recession?

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 1 June, 2012
Subject: Why Hasn't The Government Prosecuted Anyone For The 2008 Financial recession?
Blog: Financial Crime Risk, Fraud and Security
re:
https://www.garlic.com/~lynn/2012g.html#56 Why Hasn't The Government Prosecuted Anyone For The 2008 Financial recession?
https://www.garlic.com/~lynn/2012g.html#59 Why Hasn't The Government Prosecuted Anyone For The 2008 Financial recession?

Jamie Dimon Will Testify But Don't Expect Much From Him
http://www.forbes.com/sites/halahtouryalai/2012/05/31/jamie-dimon-will-testify-but-dont-expect-much-from-him/
Why Is the FDIC Insuring Jamie Dimon's Mistakes?
http://www.thenation.com/article/168148/why-fdic-insuring-jamie-dimons-mistakes
recent post with reference about Dimon being protege of Sandy Weill when they took over Commerical Credit (includes reference to it being "loansharking business")
https://www.garlic.com/~lynn/2012g.html#9

SEC: Taking on Big Firms is 'Tempting,' But We Prefer Picking on Little Guys
http://www.rollingstone.com/politics/blogs/taibblog/sec-taking-on-big-firms-is-tempting-but-we-prefer-whaling-on-little-guys-20120530

In interview yesterday, Sheila Bair (former of head of FDIC) says that it is very easy to differentiate between hedging as "insurance" and hedging as gambling. Insurance is a business cost and doesn't show profit and/or losses. Gambling can show huge profits (kept by executives and shareholders) and huge losses (passed on to taxpayers, creating significant "moral hazard").

misc. past posts referencing "moral hazard":
https://www.garlic.com/~lynn/2008g.html#64 independent appraisers
https://www.garlic.com/~lynn/2008j.html#71 lack of information accuracy
https://www.garlic.com/~lynn/2008j.html#76 lack of information accuracy
https://www.garlic.com/~lynn/2008k.html#16 dollar coins
https://www.garlic.com/~lynn/2008l.html#51 Monetary affairs on free reign, but the horse has Boulton'd
https://www.garlic.com/~lynn/2008l.html#67 dollar coins
https://www.garlic.com/~lynn/2008m.html#83 Fraud due to stupid failure to test for negative
https://www.garlic.com/~lynn/2008m.html#86 WSJ finds someone to blame.... be skeptical, and tell the WSJ to grow up
https://www.garlic.com/~lynn/2008n.html#0 Blinkylights
https://www.garlic.com/~lynn/2008n.html#3 Blinkylights
https://www.garlic.com/~lynn/2008n.html#65 Whether, in our financial crisis, the prize for being the biggest liar is
https://www.garlic.com/~lynn/2008n.html#69 Another quiet week in finance
https://www.garlic.com/~lynn/2008o.html#37 The human plague
https://www.garlic.com/~lynn/2010q.html#66 Ernst & Young sued for fraud over Lehman
https://www.garlic.com/~lynn/2011.html#84 The Imaginot Line
https://www.garlic.com/~lynn/2011f.html#52 Are Americans serious about dealing with money laundering and the drug cartels?
https://www.garlic.com/~lynn/2011h.html#22 Is BitCoin a triple entry system?
https://www.garlic.com/~lynn/2011j.html#41 Advice from Richard P. Feynman
https://www.garlic.com/~lynn/2011l.html#40 The Next Convergence: The Future of Economic Growth in a Multispeed World
https://www.garlic.com/~lynn/2011m.html#18 computer bootlaces
https://www.garlic.com/~lynn/2011n.html#49 The men who crashed the world
https://www.garlic.com/~lynn/2011p.html#96 Republicans Propose Bill to Treat Mexican Drug Cartels as 'Terrorist Insurgency'
https://www.garlic.com/~lynn/2012b.html#35 Entropy and #SocialMedia
https://www.garlic.com/~lynn/2012c.html#32 US real-estate has lost $7T in value
https://www.garlic.com/~lynn/2012g.html#28 REPEAL OF GLASS-STEAGALL DID NOT CAUSE THE FINANCIAL CRISIS - WHAT DO YOU THINK?

--
virtualization experience starting Jan1968, online at home since Mar1970

Caches, was Wardialing statistics(

Refed: **, - **, - **, - **, - **
From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Caches, was Wardialing statistics(
Newsgroups: alt.folklore.computers
Date: Fri, 01 Jun 2012 09:35:36 -0400
"Charlie Gibbs" <cgibbs@kltpzyxm.invalid> writes:
Probably because the Structured Programming zealots were beginning to write code so full of function calls that there wasn't much locality. Later, this played havoc with paged virtual memory systems.

and then object oriented programming did it automatically ... playing havoc with locality based infrastructure ... both hardware caches as well as paged virtual memory systems.

misc. past posts mentioning replacement algorithms
https://www.garlic.com/~lynn/subtopic.html#wsclock

--
virtualization experience starting Jan1968, online at home since Mar1970

SEC: Taking on Big Firms is 'Tempting,' But We Prefer Picking on Little Guys

Refed: **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 1 June, 2012
Subject: SEC: Taking on Big Firms is 'Tempting,' But We Prefer Picking on Little Guys
Blog: Google+
re:
https://plus.google.com/u/0/102794881687002297268/posts/8bNwmXkHm4w

SEC: Taking on Big Firms is 'Tempting,' But We Prefer Picking on Little Guys
http://www.rollingstone.com/politics/blogs/taibblog/sec-taking-on-big-firms-is-tempting-but-we-prefer-whaling-on-little-guys-20120530

from above:
More notoriously, the SEC stood by and did nothing even after the FBI publicly warned that the incidence of so-called liar's loans -- mortgage applications in which income levels and other information were not verified -- was "epidemic" and could cause an "economic crisis." The SEC could have walked into any major mortgage lender's office anytime in the five years prior to the 2008 crash and in one afternoon's worth of interviews learned that fraud in the mortgage markets was out of control, but instead they allowed companies like Countrywide and Long Beach to proliferate and pump the economy full of millions of bad loans, nearly destroying the economy.

... snip ...

recent reference:
https://www.garlic.com/~lynn/2012g.html#61 Why Hasn't The Government Prosecuted Anyone For The 2008 Financial recession?

recent references to liar loans:
https://www.garlic.com/~lynn/2012f.html#75 Fed Report: Mortgage Mess NOT an Inside Job
https://www.garlic.com/~lynn/2012g.html#20 Psychology Of Fraud: Why Good People Do Bad Things

--
virtualization experience starting Jan1968, online at home since Mar1970

Monopoly/ Cartons of Punch Cards

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Monopoly/ Cartons of Punch Cards
Newsgroups: alt.folklore.computers
Date: Fri, 01 Jun 2012 12:41:12
hancock4 writes:
Several years ago there was a PBS documentary on the underlying causes and events that led to the 1929 Depression. It was frightening how many of the irresponsible acts of the 1920s were forgotten only to be repeated in 2000s to cause the recent meltown. Further, the removal of seveal safeguards enacted in the 1930s hurt too, such as repeal of Glass–Steagall Act that limited commercial bank securities activities and affiliations between commercial banks and securities firms.

re:
https://www.garlic.com/~lynn/2012g.html#60 Singer Cartons of Punch Cards

some recent posts in a linkedin financial fraud discussion:
https://www.garlic.com/~lynn/2012g.html#56 Why Hasn't The Government
Prosecuted Anyone For The 2008 Financial recession?
https://www.garlic.com/~lynn/2012g.html#59 Why Hasn't The Government
Prosecuted Anyone For The 2008 Financial recession?
https://www.garlic.com/~lynn/2012g.html#61 Why Hasn't The Government Prosecuted Anyone For The 2008 Financial recession?

also this post
https://www.garlic.com/~lynn/2012g.html#63 SEC: Taking on Big Firms is Tempting,' But We Prefer Picking on Little Guys

referencing

SEC: Taking on Big Firms is 'Tempting,' But We Prefer Picking on Little Guys
http://www.rollingstone.com/politics/blogs/taibblog/sec-taking-on-big-firms-is-tempting-but-we-prefer-whaling-on-little-guys-20120530

including this from long list:
More notoriously, the SEC stood by and did nothing even after the FBI publicly warned that the incidence of so-called "liar's loans" -- mortgage applications in which income levels and other information were not verified -- was "epidemic" and could cause an "economic crisis." The SEC could have walked into any major mortgage lender's office anytime in the five years prior to the 2008 crash and in one afternoon's worth of interviews learned that fraud in the mortgage markets was out of control, but instead they allowed companies like Countrywide and Long Beach to proliferate and pump the economy full of millions of bad loans, nearly destroying the economy.

... snip ...

mentioned in some of the linkedin financial fraud groups and also previously here, in jan2009 I was asked to HTML'ize the Percora Hearings (30s congressional investigation into crash of '29, had been scanned fall of 2008 at Boston public library), with extensive internal x-links and indexes as well as URLs between what happened then and what happened this time (some belief that the new congress would have an appetite to do something). After a couple months, I got a called that it wouldn't be needed after all (references to huge amount of money that wallstreet was spreading around washington dc).

ohter recent posts mentioning pecora hearings:
https://www.garlic.com/~lynn/2012b.html#5 The round wheels industry is heading for collapse
https://www.garlic.com/~lynn/2012b.html#56 What's the most interesting thing you do in your non-work life?
https://www.garlic.com/~lynn/2012c.html#37 US real-estate has lost $7T in value
https://www.garlic.com/~lynn/2012c.html#52 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#32 PC industry is heading for more change
https://www.garlic.com/~lynn/2012g.html#7 Adult Supervision
https://www.garlic.com/~lynn/2012g.html#28 REPEAL OF GLASS-STEAGALL DID NOT CAUSE THE FINANCIAL CRISIS - WHAT DO YOU THINK?

--
virtualization experience starting Jan1968, online at home since Mar1970

Monopoly/ Cartons of Punch Cards

Refed: **, - **, - **, - **, - **, - **, - **
From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Monopoly/ Cartons of Punch Cards
Newsgroups: alt.folklore.computers
Date: Fri, 01 Jun 2012 12:51:43
hancock4 writes:
When Bethleham Steel went bankrupt, another company bought its huge Sparrows Point facility. But the govt made them devest it. The problem was that the US Steel industry was badly shrinking and what might have been bad 50 years ago was no longer bad. The end result of selling off Sparrows Point was that a Russian firm got it and there were problems.

re:
https://www.garlic.com/~lynn/2012g.html#60 Singer Cartons of Punch Cards
https://www.garlic.com/~lynn/2012g.html#64 Monopoly/ Cartons of Punch Cards

for the fun of it ... there was recent discussion about whether getting a MBA would benefit officers in the armed forces.
https://www.garlic.com/~lynn/2012b.html#88 Original Thinking Is Hard, Where Good Ideas Come From
https://www.garlic.com/~lynn/2012e.html#70 Disruptive Thinkers: Defining the Problem
https://www.garlic.com/~lynn/2012e.html#78 Time to Think ... and to Listen
https://www.garlic.com/~lynn/2012e.html#104 Time to Think ... and to Listen
https://www.garlic.com/~lynn/2012f.html#30 Before Disruption...Thinking
https://www.garlic.com/~lynn/2012f.html#44 Time to Think ... and to Listen

I included in one of the posts a posting from old ("Tandem Memo") discussion from the early 80s mentioning MBAs were major factor in doing in the US steel industry:
https://www.garlic.com/~lynn/2012e.html#email810511

from IBM Jargon

Tandem Memos - n. Something constructive but hard to control; a fresh of breath air (sic). That's another Tandem Memos. A phrase to worry middle management. It refers to the computer-based conference (widely distributed in 1981) in which many technical personnel expressed dissatisfaction with the tools available to them at that time, and also constructively criticized the way products were [are] developed. The memos are required reading for anyone with a serious interest in quality products. If you have not seen the memos, try reading the November 1981 Datamation summary.

... snip ...

--
virtualization experience starting Jan1968, online at home since Mar1970

Monopoly/ Cartons of Punch Cards

Refed: **, - **, - **, - **
From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Monopoly/ Cartons of Punch Cards
Newsgroups: alt.folklore.computers
Date: Fri, 01 Jun 2012 15:28:24
hancock4 writes:
Speaking of aerospace, I recall that in the 1960s it was the hottest thing, and lots of companies were switching to it. (Ronson, which made lighter flints, went into it). Then around 1971 there was a huge collapse. I remember the TV news showing desperate times in Seattle as a result of big cutbacks at Boeing. Aerospace engineers were so specialized that they weren't able to transfer their skills to related fields. (Kind of like software development today).

at the time, Boeing was the largest (by far) employer in Seattle ... and was doing mostly commercial airplanes. The downturn in the economy resulted in lots of Boeing layoffs ... which had severe impact on Seattle's economy (I think there is something about there being 2-3 jobs for every manufacturing job). At the time, there was no other significant employer in Seattle area (Microsoft and software industry in Seattle area was more than a decade away). During the 60s, Boeing Seattle had huge expansion, followed by the huge contraction (back to preexpansion levels).

There was case where somebody put up billboard saying something about would the last person to leave Seattle please turn out the lights.

It was somewhat referred to when IBM went in the red in the early 80s and its mainframe business had a severe downturn. POK was center/mainstay of mainframe business and was having big downturn ... and somebody sent out a message about would the last person to leave POK, please turn out the lights. IBM Kingston ... a little north of POK appeared to have all of its IBM operations shutdown and the buildings emptied. The magnitude of the employee cuts had major impact on Hudson valley economy (significant percentage of total Hudson valley employment).

recent (linkedin IBM employee "Greater IBM") reference to turning out the lights (analogy to the Seattle/Boeing billboard):
https://www.garlic.com/~lynn/2012.html#57 The Myth of Work-Life Balance

--
virtualization experience starting Jan1968, online at home since Mar1970

Monopoly/ Cartons of Punch Cards

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Monopoly/ Cartons of Punch Cards
Newsgroups: alt.folklore.computers
Date: Fri, 01 Jun 2012 15:43:28
hancock4 writes:
For the life of meet I can't understand why the business community was so hostile to the SEC, then and now. That created a more hoenst and level playing. Not perfect obviously, but much better than before.

re:
https://www.garlic.com/~lynn/2012g.html#65 Monopoly/ Cartons of Punch Cards
and:
https://www.garlic.com/~lynn/2012g.html#63 SEC: Taking on Big Firms is Tempting,' But We Prefer Picking on Little Guys

from 30s' congressional Pecora hearings:
BROKERS' LOANS AND INDUSTRIAL DEPRESSION

For the purpose of making it perfectly clear that the present industrial depression was due to the inflation of credit on brokers' loans, as obtained from the Bureau of Research of the Federal Reserve Board, the figures show that the inflation of credit for speculative purposes on stock exchanges were responsible directly for a rise in the average of quotations of the stocks from sixty in 1922 to 225 in 1929 to 35 in 1932 and that the change in the value of such Stocks listed on the New York Stock Exchange went through the same identical changes in almost identical percentages.


... snip ...

In this recent (linkedin) financial crime post
https://www.garlic.com/~lynn/2012g.html#20 Psychology Of Fraud: Why Good People Do Bad Things

... I draw the analogy with inactivity by the regulatory bodies the last decade (not just SEC) with
https://en.wikipedia.org/wiki/Three_wise_monkeys

I repeat it this Google+ post
https://www.garlic.com/~lynn/2012g.html#55 U.S. Needs a National Safety Board for Financial Crashes

and again in this more recent linkedit financial crime post
https://www.garlic.com/~lynn/2012g.html#56 Why Hasn't The Government Prosecuted Anyone For The 2008 Financial recession?

this time, in theory SEC also had the power to prevent ENRON & WORLDCOM ... but didn't. Congress passes Sarbanes-Oxley giving SEC more powers ... however not doing anything is not doing anything regardless of the amount of power. GAO possibly even thought so and started doing reports of public company fraudulent financial filings ... even showing uptic after SOX:
http://www.gao.gov/products/GAO-03-395R
http://www.gao.gov/products/GAO-06-678
https://www.gao.gov/products/gao-06-1079sp

in theory, all of the senior executives would be doing jail time under SOX

#1 on times list of those responsible:
http://content.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877339,00.html
#2 on times list
http://content.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877330,00.html
#3 on times list:
http://content.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877331,00.html
#4 on times list
http://www.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877323,00.html

#3 & #4 are head of regulatory agencies not doing anything during the last decade

one might ask why bank robbers don't like the police (assuming the police are actually arresting the robbers and then they get prosecuted).

--
virtualization experience starting Jan1968, online at home since Mar1970

Monopoly/ Cartons of Punch Cards

From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Monopoly/ Cartons of Punch Cards
Newsgroups: alt.folklore.computers
Date: Fri, 01 Jun 2012 16:58:28
hancock4 writes:
There was a banking deregulation passed circa 1979 that allowed savings banks to do the things commercial banks did. A lot of savings banks jumped into areas they were totally unqualified to do and failed, contributing to the S&L scandal. An ancient major bank in Phila, the Philadelphia Savings Fund Society, a mutal savings bank, was such an example. They got into ridiculous commercial loans in distant places.

re:
https://www.garlic.com/~lynn/2012g.html#64 Monopoly/ Cartons of Punch Cards
https://www.garlic.com/~lynn/2012g.html#65 Monopoly/ Cartons of Punch Cards
https://www.garlic.com/~lynn/2012g.html#66 Monopoly/ Cartons of Punch Cards
https://www.garlic.com/~lynn/2012g.html#67 Monopoly/ Cartons of Punch Cards

one of the things with deregulation in the S&L scandal was that nearly anybody could buy and S&L on the cheap ... give themselves loans ... sometimes through fronts but also directly ... and then default on the loans ... bascially looting the operations. past post
https://www.garlic.com/~lynn/2011i.html#21

references president asked the current S&L regulator to cease enforcement, he refused and was then asked to resign ... so his replacement could be appointed. Replacement is mentioned in "Two Tillion Dollar Meltdown" (pg29)
https://www.amazon.com/Two-Trillion-Dollar-Meltdown-Rollers-ebook/dp/B0097DE7DM/

... also from book (pg30)
... it was possible for a single individual to take control of an S&L, then organize and lend to multiple subsidiaries -- for land acquisition, construction, building management, and the like -- and create his own small real estate empire entirely with depositors' money.

... snip ...

and (pg54):
The relentless deregulation drive that started during the Reagan administration steadily shifted lending activities to the purview of nonregulated entities, until by 2006, only about a quarter of all lending occurred in regulated sectors.

... snip ...

--
virtualization experience starting Jan1968, online at home since Mar1970

Monopoly/ Cartons of Punch Cards

Refed: **, - **, - **, - **
From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Monopoly/ Cartons of Punch Cards
Newsgroups: alt.folklore.computers
Date: Fri, 01 Jun 2012 17:04:36
Michael Black <et472@ncf.ca> writes:
The initial thrust of damming the Columbia River was as a source of water, since on the other side of the moutains things were kind of dry. Electricity was secondary, but it was there when WWII came and that really helped Boeing take off in Seattle, cheap aluminum because there was cheap electricty to refine it.

re:
https://www.garlic.com/~lynn/2012g.html#66 Monopoly/ Cartons of Punch Cards

Few recent posts mentioning being con'ed into going to Boeing Seattle the summer of '69 to help setup what would become Boeing Computer Services (I was first half-dozen or so employees of BCS)
https://www.garlic.com/~lynn/2012.html#42 Drones now account for one third of U.S. warplanes
https://www.garlic.com/~lynn/2012.html#51 5 meg hard drive
https://www.garlic.com/~lynn/2012.html#52 5 meg hard drive
https://www.garlic.com/~lynn/2012.html#61 Hybrid computing -- from mainframe to virtualization
https://www.garlic.com/~lynn/2012.html#70 Regulatory Agency logo
https://www.garlic.com/~lynn/2012c.html#13 Study links ultrafast machine trading with risk of crash
https://www.garlic.com/~lynn/2012c.html#25 Goldman Sachs P.R. Chief's Accidental Exit Interview
https://www.garlic.com/~lynn/2012d.html#18 Memory versus processor speed
https://www.garlic.com/~lynn/2012f.html#40 STSC Story
https://www.garlic.com/~lynn/2012g.html#0 Top IBM Salespeople Are Leaving In Droves, Say Those Who Have Quit
https://www.garlic.com/~lynn/2012g.html#3 Quitting Top IBM Salespeople Say They Are Leaving In Droves

misc. past posts mentioning grand coulee dam:
https://www.garlic.com/~lynn/2002n.html#43 VR vs. Portable Computing
https://www.garlic.com/~lynn/2003d.html#32 IBM says AMD dead in 5yrs ... -- Microsoft Monopoly vs. IBM
https://www.garlic.com/~lynn/2007o.html#14 Geothermal was: VLIW pre-history
https://www.garlic.com/~lynn/2008e.html#7 was: 1975 movie "Three Days of the Condor" tech stuff
https://www.garlic.com/~lynn/2008n.html#68 VMware Chief Says the OS Is History
https://www.garlic.com/~lynn/2010j.html#13 A "portable" hard disk
https://www.garlic.com/~lynn/2010j.html#66 A "portable" hard disk
https://www.garlic.com/~lynn/2011d.html#47 The first personal computer (PC)
https://www.garlic.com/~lynn/2011n.html#66 Soups

--
virtualization experience starting Jan1968, online at home since Mar1970

Monopoly/ Cartons of Punch Cards

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Monopoly/ Cartons of Punch Cards
Newsgroups: alt.folklore.computers
Date: Fri, 01 Jun 2012 17:32:44
hancock4 writes:
The bailout of various big entities like AIG and General Motors was recognized as necessary to prevent the massive contraction and deflation in the financial system that occurred in the 1930s.

re:
https://www.garlic.com/~lynn/2012g.html#64 Monopoly/ Cartons of Punch Cards
https://www.garlic.com/~lynn/2012g.html#65 Monopoly/ Cartons of Punch Cards
https://www.garlic.com/~lynn/2012g.html#66 Monopoly/ Cartons of Punch Cards
https://www.garlic.com/~lynn/2012g.html#67 Monopoly/ Cartons of Punch Cards
https://www.garlic.com/~lynn/2012g.html#68 Monopoly/ Cartons of Punch Cards
https://www.garlic.com/~lynn/2012g.html#69 Monopoly/ Cartons of Punch Cards

TARP appropriation was to buy toxic assets:
https://en.wikipedia.org/wiki/Troubled_Asset_Relief_Program

however, they apparently didn't realize the magnitude of the problem ... it would have required at least ten times the $700B appropriated.
https://en.wikipedia.org/wiki/Troubled_Asset_Relief_Program

Just the four largest too-big-to-fail were carrying estimated $5.2T "off-book" the end of 2008:
Bank's Hidden Junk Menaces $1 Trillion Purge
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=akv_p6LBNIdw&refer=home

big issue was how they were allowed to even accumulate assets of such magnitude:
http://www.bloomberg.com/apps/news?pid=newsarchive&refer=home&sid=aYJZOB_gZi0I

note the fall of 2008, several tens of billions of toxic assets had been sold at 22cents on the dolloar. If the four largest too-big-to-fail had been required to bring them both on to their books and value them, they would have all been declared bankrupt and liquidated.

In any case, as they realized the magnitude of the problem, the retargeted the TARP funds for other purposes and left it to Federal Reserve to handle the bail-out behind the scenes ... trillions of no-interest loans and buying enormous amount of toxic assets at 98cents on the dollar.

The story about AIG was that it was in process of negotiating paying of CDS at 50-to-60 cents on the dollar ... when the sec. of treasury stepped in and declared it illegal to pay less than 100cents on the dollar, forced AIG to take a bail-out to pay off CDS at 100cents on the and forced AIG to sign a document giving up all rights to sue those it was paying off CDS (the outgoing sec. of treasury had formally been CEO of the company that was to be the largest recipient of AIG payoffs).

I've mentioned before that in early 80s, there was call for 100% unearned profit tax on the US automobile industry ... the scenario was that foreign auto import quotas was to reduce competition and give the US companies enormous additional profits which they could then use to remake themselves ... but instead they were pocketing the profits and continued business as usual. Then circa 1990, the industry had C4 taskforce to look at completely remaking themselves ... they were planning on heavily leveraging IT technology and so representatives from IT/dataprocessing companies were asked to participate. During the meetings they could accurately described the foriegn competition and what they needed to do to respond. However, none of it seemed to happen, all of the stakeholders continuing business as usual. We are now more than 30yrs after the original foriegn auto import quotas and the industry failing to completely remake themselves.

misc. past posts mentioning AIG being forced to take gov. bailout, forced to pay 100cents on the dollar, and forced to give up all rights to sue those booking CDS with AIG:
https://www.garlic.com/~lynn/2011h.html#40 Delinquent Homeowners to Get Mortgage Aid from Government
https://www.garlic.com/~lynn/2011j.html#39 Advice from Richard P. Feynman
https://www.garlic.com/~lynn/2011j.html#45 S&P's History of Relentless Political Advocacy
https://www.garlic.com/~lynn/2011j.html#50 How Many Divisions Does Standard and Poors Have?
https://www.garlic.com/~lynn/2011k.html#4 Geithner, Bernanke have little in arsenal to fight new crisis
https://www.garlic.com/~lynn/2011m.html#2 computer bootlaces
https://www.garlic.com/~lynn/2011n.html#79 The men who crashed the world
https://www.garlic.com/~lynn/2011o.html#77 How Pursuit of Profits Kills Innovation and the U.S. Economy
https://www.garlic.com/~lynn/2012d.html#52 Goldman Exec Quits In A Scathing NYT Op-Ed About How The Firm Abuses Its Clients
https://www.garlic.com/~lynn/2012e.html#57 speculation

misc. past posts mentioning federal reserve role behind the scenes:
https://www.garlic.com/~lynn/2010p.html#17 What banking is. (Essential for predicting the end of finance as we know it.)
https://www.garlic.com/~lynn/2010p.html#23 They always think we don't understand
https://www.garlic.com/~lynn/2010p.html#46 TCM's Moguls documentary series
https://www.garlic.com/~lynn/2010q.html#58 Programmer Charged with thieft (maybe off topic)
https://www.garlic.com/~lynn/2010q.html#66 Ernst & Young sued for fraud over Lehman
https://www.garlic.com/~lynn/2011.html#48 What do you think about fraud prevention in the governments?
https://www.garlic.com/~lynn/2011b.html#45 Productivity And Bubbles
https://www.garlic.com/~lynn/2011j.html#3 Greed, Excess and America's Gaping Class Divide
https://www.garlic.com/~lynn/2011j.html#11 Innovation and iconoclasm
https://www.garlic.com/~lynn/2011j.html#39 Advice from Richard P. Feynman
https://www.garlic.com/~lynn/2011k.html#4 Geithner, Bernanke have little in arsenal to fight new crisis
https://www.garlic.com/~lynn/2011k.html#23 Wall Street Aristocracy Got $1.2 Trillion in Fed's Secret Loans
https://www.garlic.com/~lynn/2011l.html#73 computer bootlaces
https://www.garlic.com/~lynn/2011n.html#49 The men who crashed the world
https://www.garlic.com/~lynn/2011n.html#57 The Mortgage Crisis---Some Inside Views
https://www.garlic.com/~lynn/2011o.html#37 Civilization, doomed?
https://www.garlic.com/~lynn/2011o.html#74 The Wall Street Pentagon Papers: Biggest Scam In World History Exposed: Are The Federal Reserve's Crimes Too Big To Comprehend?
https://www.garlic.com/~lynn/2011o.html#93 The men who crashed the world
https://www.garlic.com/~lynn/2011p.html#3 The Obama Spending Non-surge
https://www.garlic.com/~lynn/2011p.html#7 FDR explains one dimension of our problem: bankers own the government
https://www.garlic.com/~lynn/2011p.html#30 21st Century Management approach?
https://www.garlic.com/~lynn/2011p.html#63 21st Century Management approach?
https://www.garlic.com/~lynn/2012c.html#32 US real-estate has lost $7T in value
https://www.garlic.com/~lynn/2012c.html#45 Fannie, Freddie Charge Taxpayers For Legal Bills
https://www.garlic.com/~lynn/2012c.html#46 PC industry is heading for more change
https://www.garlic.com/~lynn/2012c.html#55 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#45 Banks Repaid Fed Bailout With Other Fed Money: Government Report

misc. past posts mentioning call for 100% unearned profit tax and/or C4 taskforce meetings:
https://www.garlic.com/~lynn/2000f.html#41 Reason Japanese cars are assembled in the US (was Re: American bigotry)
https://www.garlic.com/~lynn/2004b.html#52 The SOB that helped IT jobs move to India is dead!
https://www.garlic.com/~lynn/2004h.html#22 Vintage computers are better than modern crap !
https://www.garlic.com/~lynn/2005s.html#2 Internet today -- what's left for hobbiests
https://www.garlic.com/~lynn/2006.html#23 auto industry
https://www.garlic.com/~lynn/2006g.html#14 The Pankian Metaphor
https://www.garlic.com/~lynn/2006g.html#17 The Pankian Metaphor
https://www.garlic.com/~lynn/2006g.html#20 The Pankian Metaphor
https://www.garlic.com/~lynn/2006m.html#49 The Pankian Metaphor (redux)
https://www.garlic.com/~lynn/2007j.html#33 IBM Unionization
https://www.garlic.com/~lynn/2007j.html#72 IBM Unionization
https://www.garlic.com/~lynn/2007j.html#88 IBM Unionization
https://www.garlic.com/~lynn/2007k.html#11 IBM Unionization
https://www.garlic.com/~lynn/2007k.html#24 IBM Unionization
https://www.garlic.com/~lynn/2008.html#28 As Expected, Ford Falls From 2nd Place in U.S. Sales
https://www.garlic.com/~lynn/2008.html#39 competitiveness
https://www.garlic.com/~lynn/2008.html#84 Toyota Sales for 2007 May Surpass GM
https://www.garlic.com/~lynn/2008p.html#77 Tell me why the taxpayer should be saving GM and Chrysler (and Ford) managers & shareholders at this stage of the game?
https://www.garlic.com/~lynn/2008q.html#22 Is Pride going to decimate the auto Industry?
https://www.garlic.com/~lynn/2008r.html#63 Have you told your Congressman how to VOTE on the auto bailout?
https://www.garlic.com/~lynn/2008s.html#18 What next? from where would the Banks be hit?
https://www.garlic.com/~lynn/2008s.html#20 Five great technological revolutions
https://www.garlic.com/~lynn/2008s.html#57 Garbage in, garbage out trampled by Moore's law
https://www.garlic.com/~lynn/2009f.html#20 What is the real basis for business mess we are facing today?
https://www.garlic.com/~lynn/2009i.html#2 China-US Insights on the Future of the Auto Industry
https://www.garlic.com/~lynn/2009i.html#3 IBM interprets Lean development's Kaizen with new MCIF product
https://www.garlic.com/~lynn/2009i.html#31 Why are z/OS people reluctant to use z/OS UNIX?
https://www.garlic.com/~lynn/2010f.html#70 Handling multicore CPUs; what the competition is thinking
https://www.garlic.com/~lynn/2010h.html#8 Far and near pointers on the 80286 and later
https://www.garlic.com/~lynn/2010i.html#75 Favourite computer history books?
https://www.garlic.com/~lynn/2010k.html#0 Idiotic programming style edicts
https://www.garlic.com/~lynn/2010o.html#22 60 Minutes News Report:Unemployed for over 99 weeks!
https://www.garlic.com/~lynn/2010o.html#59 They always think we don't understand
https://www.garlic.com/~lynn/2010p.html#23 They always think we don't understand
https://www.garlic.com/~lynn/2011e.html#21 End of an era
https://www.garlic.com/~lynn/2011e.html#90 PDCA vs. OODA
https://www.garlic.com/~lynn/2011f.html#2 Car models and corporate culture: It's all lies
https://www.garlic.com/~lynn/2011i.html#35 Having left IBM, seem to be reminded that IBM is not the same IBM I had joined
https://www.garlic.com/~lynn/2011j.html#34 Boyd's Reading List Revisited
https://www.garlic.com/~lynn/2011l.html#35 The Next Convergence: The Future of Economic Growth in a Multispeed World
https://www.garlic.com/~lynn/2011l.html#73 computer bootlaces
https://www.garlic.com/~lynn/2011n.html#65 Soups
https://www.garlic.com/~lynn/2011n.html#81 A Close Look at the Perry Tax Plan
https://www.garlic.com/~lynn/2011n.html#86 PDCA vs. OODA
https://www.garlic.com/~lynn/2011p.html#52 Has anyone successfully migrated off mainframes?
https://www.garlic.com/~lynn/2012.html#22 Who originated the phrase "user-friendly"?
https://www.garlic.com/~lynn/2012.html#25 You may ask yourself, well, how did I get here?
https://www.garlic.com/~lynn/2012.html#31 Who originated the phrase "user-friendly"?
https://www.garlic.com/~lynn/2012c.html#26 Why Can't America Catch UP?
https://www.garlic.com/~lynn/2012c.html#32 US real-estate has lost $7T in value
https://www.garlic.com/~lynn/2012c.html#40 Where are all the old tech workers?
https://www.garlic.com/~lynn/2012c.html#62 Why Is Finance So Big?
https://www.garlic.com/~lynn/2012d.html#54 IBM cuts more than 1,000 U.S. Workers
https://www.garlic.com/~lynn/2012e.html#78 Time to Think ... and to Listen
https://www.garlic.com/~lynn/2012f.html#77 Vampire Squid
https://www.garlic.com/~lynn/2012f.html#88 Defense acquisitions are broken and no one cares

--
virtualization experience starting Jan1968, online at home since Mar1970

Monopoly/ Cartons of Punch Cards

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Monopoly/ Cartons of Punch Cards
Newsgroups: alt.folklore.computers
Date: Fri, 01 Jun 2012 20:34:06
Walter Bushell <proto@panix.com> writes:
The non recourse system would work much better if the borrowers had some skin in the game. The no down payment thing made the situation *much* worse. If you have a 20% or even a 10% down payment, I would think that would stop most people from walking away frivolously. I suppose the teaser rates should go too, that is also waka waka.

But leave the non recourse, so the mortgage holders get a swift kick in the nuts too, if boom goes bust.


ref to liars loans:
https://www.garlic.com/~lynn/2012g.html#63 SEC: Taking on Big Firms is
Tempting,' But We Prefer Picking on Little Guys
https://www.garlic.com/~lynn/2012g.html#64 Monopoly/ Cartons of Punch Cards

reference to Brokers' Loans fueled the speculation/bubble/crash '29 stock market:
https://www.garlic.com/~lynn/2012g.html#67 Monopoly/ Cartons of Punch Cards

S&L crisis, lack of regulation allowed S&Ls to be acquired and then used as personal piggy-bank
https://www.garlic.com/~lynn/2012g.html#68 Monopoly/ Cartons of Punch Cards

above also mentions that relentless deregulation at least back to early 80s ... had by 2006 only a quarter of all lending occurred in regulated sectors ... or at least traditionally regulated loan orginators ... whether or not they were actively being regulated ... the rest were new forms of loan originators ... like the #1 from times list of those responsible ... some recent refs to the list
https://www.garlic.com/~lynn/2012g.html#20 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012g.html#28 REPEAL OF GLASS-STEAGALL DID NOT CAUSE THE FINANCIAL CRISIS - WHAT DO YOU THINK?
https://www.garlic.com/~lynn/2012g.html#59 Why Hasn't The Government Prosecuted Anyone For The 2008 Financial recession?

nominal regulated depository institutions used deposits as source of funds for loans. in congressional hearings into the pivotal role that rating agencies played in the mess ... testimony was that the last decade it was possible for CDO sellers to pay for triple-A ratings ... even when both the CDO sellers and the rating agencies knew they weren't worth triple-A.

securitized mortgages had been used during S&L crisis to obfuscate fraudlent mortgages. In the late 90s, we were asked to look at improving the integrity of the supporting documents in securitized mortgages. some old post from 1999:
https://www.garlic.com/~lynn/aepay3.htm#riskm

however, with new breed of loan originators being able to use CDOs as source of funds ... and paying for triple-A ratings (w/o regard to quality) resulted in they no longer had to care about loan quality and/or borrower's qualifications ... and they could start doing no-down, no-documentation, 1% interest payment only ARMs (liars' loans) ... aka triple-A trumps documentation ... and no supporting documentation means that there is no longer any issue about supporting documentation integrity (during the rating agency congressional hearings, one of the news commentators commented that they would likely avoid federal prosecution because of being able to blackmail the gov. with rating downgrade).

Speculators could get 2000% ROI in parts of the country with 20-30% inflation with 1% interest payment ARMs (planning on flipping before rates adjust). Critical role was long originators being able to pay for triple-A rating (w/o regard to actual quality), turning the real-estate market into the equivalent of the 20's stock market.

$27T then was done during the bubble:
Evil Wall Street Exports Boomed With 'Fools' Born to Buy Debt
https://www.bloomberg.com/news/articles/2008-10-27/evil-wall-street-exports-boomed-with-fools-born-to-buy-debt

recent posts mentioning $27T done during the bubble:
https://www.garlic.com/~lynn/2012.html#32 Wall Street Bonuses May Reach Lowest Level in 3 Years
https://www.garlic.com/~lynn/2012b.html#19 "Buffett Tax" and truth in numbers
https://www.garlic.com/~lynn/2012b.html#65 Why Wall Street Should Stop Whining
https://www.garlic.com/~lynn/2012b.html#95 Bank of America Fined $1 Billion for Mortgage Fraud
https://www.garlic.com/~lynn/2012c.html#30 US real-estate has lost $7T in value
https://www.garlic.com/~lynn/2012c.html#45 Fannie, Freddie Charge Taxpayers For Legal Bills
https://www.garlic.com/~lynn/2012c.html#46 PC industry is heading for more change
https://www.garlic.com/~lynn/2012c.html#54 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#32 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#42 China's J-20 Stealth Fighter Is Already Doing A Whole Lot More Than Anyone Expected
https://www.garlic.com/~lynn/2012e.html#23 Are mothers naturally better at OODA because they always have the Win in mind?
https://www.garlic.com/~lynn/2012e.html#40 Who Increased the Debt?
https://www.garlic.com/~lynn/2012e.html#58 Word Length
https://www.garlic.com/~lynn/2012f.html#31 Rome speaks to us. Their example can inspire us to avoid their fate
https://www.garlic.com/~lynn/2012f.html#63 One maths formula and the financial crash
https://www.garlic.com/~lynn/2012f.html#66 Predator GE: We Bring Bad Things to Life
https://www.garlic.com/~lynn/2012f.html#69 Freefall: America, Free Markets, and the Sinking of the World Economy
https://www.garlic.com/~lynn/2012f.html#75 Fed Report: Mortgage Mess NOT an Inside Job
https://www.garlic.com/~lynn/2012f.html#80 The Failure of Central Planning
https://www.garlic.com/~lynn/2012f.html#87 How do you feel about the fact that India has more employees than US?
https://www.garlic.com/~lynn/2012g.html#6 Adult Supervision

--
virtualization experience starting Jan1968, online at home since Mar1970

Monopoly/ Cartons of Punch Cards

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Monopoly/ Cartons of Punch Cards
Newsgroups: alt.folklore.computers
Date: Sat, 02 Jun 2012 09:15:39
hancock4 writes:
POK = Poughkeepsie?

I knew someone (a tradesman) in Hudson/Philmont NY who left the area on account of bleak employment opportunities. There were also some cement factories that shut down. However, that area seems to have recovered somewhat as a yuppie haven from NYC and antiques center.

How is Endicott NY faring? At one time it was both a big IBM and Endicott-Johnson shoe manufacturer. I presume the shoe company is gone and IBM's remaining operations are but a shadow of what was once there.

According to the IBM histories, there was a rivalry between Endicott and Poughkeepsie research labs; different locations got different development assignments for reasons dealing with their specific culture. Watson Jr's memoir spoke of it, too.


re:
https://www.garlic.com/~lynn/2012g.html#66 Monopoly/ Cartons of Punch Cards

Poughkeepsie was high-end mainframe & Endicott was low-end/mid-range mainframe

in the late 70s and early 80s, 4300 machines saw huge upswing in the low&midrange market ... revenue starting to rival that of POK. It was selling into same market as DEC VAX which also saw big upswing ... old post w/decade of VAX numbers sliced&diced by year, model, US, non-US
https://www.garlic.com/~lynn/2002f.html#0

as can be seen by the mid-80s, the low&mid range market was starting to move to workstations & large PCs. 4300 saw similar numbers is the small unit number orders. The big difference between 4300 & vax was the several hundred unit numbers by large corporations for 4300 ... sort of the leading edge of the distributed computing tsunami. However by mid-80s, 4300 were also starting to see the effect of the move of low&mid range to workstations and large PCs; the 4361/4381 (follow-ons to the 4331/4341) never saw the big sales (of their predecessors). misc. old 4300 email
https://www.garlic.com/~lynn/lhwemail.html#43xx

some of the big datacenters were bursting at the seams and putting 4300 machines out in departments alleviated some of the pressure on the datacenters. Internally, departmental conference rooms became scarce commodity as they were taken over for departmental 4300 machines.

Inside the datacenter, POK saw some pressure from 4300. cluster of 4341 was higher processing power, lower cost, smaller footprint, less electricity/power ... than 3033. At one point, head of POK had internal allocation of critical 4341 manufacturing component, cut in half (internal politics).

With disappearing low/mid range in late 80s, Endicott business started to drop off considerably ... I'm not even sure what is left in Endicott now.

Also, in the late 80s, a senior disk engineer got a talk scheduled at annual, world-wide, internal communication group conference and opened with the statement that the communication group was going to be responsible for the demise of the disk division. The issue was that communication group had strategic ownership & stranglehold on everything that crossed the datacenter ... and they were working hard to preserve their terminal emulation install base and fight off client/server and distributed computing. The disk division was seeing drop in disk sales as data was fleeing the datacenter to more distributed computing friendly platforms. The disk division had come up with a number of solutions to address the problem ... but they were constantly being vetoed by the communication group. misc. past posts
https://www.garlic.com/~lynn/subnetwork.html#emulation
AMEX, Private Equity, IBM related Gerstner posts
https://www.garlic.com/~lynn/submisc.html#gerstner

Note that in the mid-80s senior management was predicting sales would be doubling from $60B to $120B mostly on mainframe sales and started massive internal building program to double mainframe manufacturing capacity ... at a time when things were starting to go in the opposite direction. There was also big upswing in the executive fasttrack program (apparently looking to also double number of executives) ... that had detrimental effect as large numbers of inexperienced people were rapidly rotated through various business unit executive positions.

A few years, and the company goes into the red in the early 90s ... leading to the scenario where somebody distributes a note about would the last person to leave POK, please turn out the lights.

A number of recent posts on Watsons earlier reign and/or Gerstner's "resurrection" of IBM
https://www.garlic.com/~lynn/2012.html#45 You may ask yourself, well, how did I get here?
https://www.garlic.com/~lynn/2012.html#57 The Myth of Work-Life Balance
https://www.garlic.com/~lynn/2012.html#92 Has anyone successfully migrated off mainframes?
https://www.garlic.com/~lynn/2012.html#100 The PC industry is heading for collapse
https://www.garlic.com/~lynn/2012.html#103 Google works on Internet standards with TCP proposals, SPDY standardization
https://www.garlic.com/~lynn/2012.html#104 Can a business be democratic? Tom Watson Sr. thought so
https://www.garlic.com/~lynn/2012b.html#12 Sun Tzu, Boyd, strategy and extensions of same
https://www.garlic.com/~lynn/2012b.html#41 Are rotating register files still a bad idea?
https://www.garlic.com/~lynn/2012b.html#59 Original Thinking Is Hard, Where Good Ideas Come From
https://www.garlic.com/~lynn/2012b.html#74 IBM Doing Some Restructuring?
https://www.garlic.com/~lynn/2012b.html#76 IBM Doing Some Restructuring?
https://www.garlic.com/~lynn/2012d.html#21 Inventor of e-mail honored by Smithsonian
https://www.garlic.com/~lynn/2012d.html#23 IBM cuts more than 1,000 U.S. Workers
https://www.garlic.com/~lynn/2012d.html#35 Layer 8: NASA unplugs last mainframe
https://www.garlic.com/~lynn/2012e.html#38 A bit of IBM System 360 nostalgia
https://www.garlic.com/~lynn/2012e.html#77 Just for a laugh... How to spot an old IBMer
https://www.garlic.com/~lynn/2012e.html#104 Time to Think ... and to Listen
https://www.garlic.com/~lynn/2012e.html#105 Burroughs B5000, B5500, B6500 videos
https://www.garlic.com/~lynn/2012f.html#3 Time to Think ... and to Listen
https://www.garlic.com/~lynn/2012f.html#11 Word Length
https://www.garlic.com/~lynn/2012f.html#23 Time to competency for new software language?
https://www.garlic.com/~lynn/2012f.html#78 What are you experiences with Amdahl Computers and Plug-Compatibles?
https://www.garlic.com/~lynn/2012f.html#84 How do you feel about the fact that India has more employees than US?
https://www.garlic.com/~lynn/2012f.html#92 How do you feel about the fact that India has more employees than US?
https://www.garlic.com/~lynn/2012g.html#4 Hard drives: A bit of progress
https://www.garlic.com/~lynn/2012g.html#34 Co-existance of z/OS and z/VM on same DASD farm

--
virtualization experience starting Jan1968, online at home since Mar1970

Monopoly/ Cartons of Punch Cards

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Monopoly/ Cartons of Punch Cards
Newsgroups: alt.folklore.computers
Date: Sat, 02 Jun 2012 10:32:51
re:
https://www.garlic.com/~lynn/2012g.html#65 Monopoly/ Cartons of Punch Cards

part of the recent MBA finger-pointing discussion was focus on wringing every possible dollar out of current infrastructure ... which skimmed from things like maintenance, infrastructure operation, R&D (long termthings with no immediate payback). Such activity would have also gone hand-in-hand with pure greed (possibly even leveraging MBAs as front for their agendas).

a contributing factor raised in
https://www.amazon.com/Quiet-Power-Introverts-Talking-ebook/dp/B004J4WNL2

was that last century America saw the rise of the "cult of personality" at the expense of character.

I had first sponsored Boyd's briefings at IBM in the early 80s. One of his points was that at entry to WW2, the US military had to field a large number with little or no experience. As a result they created a rigid, top-down command&control infrastructure to leverage the few available exerpienced individuals. He commented that by the early 80s, that paradigm was starting to adversely affect corporate america as former WW2 military members were climbing the corporate ladders (and emulating the WW2 military rigid, top-down command&control infrastructure ... assuming that only those at the very top knew what they were doing ... and everybody else had little or no skills, experience, and/or compentence).

Concentrating all the control at the very top, "cult of personality" (at expense of character) and greed ... combine to drastically reduce effectiveness of an organization and its ability to adapt.

A more recent example is claims that the ratio of avg executive compensation to general worker compensation had exploded to 400:1 after having been 20:1 for a long time and 10:1 in most of the rest of the world. Age of Greed
https://www.amazon.com/Age-Greed-Triumph-Finance-ebook/dp/B004DEPF6I/

claims that the ratio spiked over 500:1 during the economic mess

misc. past posts mentioning "Age of Greed":
https://www.garlic.com/~lynn/2012.html#3 We are on the brink of a
historic decision [referring to defence cuts]
https://www.garlic.com/~lynn/2012.html#30 Age of Greed: The Triumph of Finance and the Decline of America, 1970 to the Present
https://www.garlic.com/~lynn/2012.html#31 Who originated the phrase "user-friendly"?
https://www.garlic.com/~lynn/2012.html#37 Romney's Opponents Intensify Attacks as Voting Nears
https://www.garlic.com/~lynn/2012.html#40 Age of Greed: The Triumph of Finance and the Decline of America, 1970 to the Present
https://www.garlic.com/~lynn/2012.html#45 You may ask yourself, well, how did I get here?
https://www.garlic.com/~lynn/2012.html#47 Avoiding a lost decade
https://www.garlic.com/~lynn/2012.html#48 Fed's image tarnished by newly released documents
https://www.garlic.com/~lynn/2012.html#57 The Myth of Work-Life Balance
https://www.garlic.com/~lynn/2012.html#62 Railroaded
https://www.garlic.com/~lynn/2012.html#70 Regulatory Agency logo
https://www.garlic.com/~lynn/2012.html#72 Chris Dodd's SOPA crusading
https://www.garlic.com/~lynn/2012.html#77 Age of Greed: The Triumph of Finance and the Decline of America, 1970 to the Present
https://www.garlic.com/~lynn/2012.html#79 Bain: A consulting firm too hot to handle? (Fortune, 1987)
https://www.garlic.com/~lynn/2012.html#87 The PC industry is heading for collapse
https://www.garlic.com/~lynn/2012.html#92 Has anyone successfully migrated off mainframes?
https://www.garlic.com/~lynn/2012.html#95 Can anyone offer some insight
https://www.garlic.com/~lynn/2012b.html#12 Sun Tzu, Boyd, strategy and extensions of same
https://www.garlic.com/~lynn/2012b.html#19 "Buffett Tax" and truth in numbers
https://www.garlic.com/~lynn/2012b.html#29 The speeds of thought, complexities of problems
https://www.garlic.com/~lynn/2012b.html#43 Where are all the old tech workers?
https://www.garlic.com/~lynn/2012b.html#54 The New Age Bounty Hunger -- Showdown at the SEC Corral
https://www.garlic.com/~lynn/2012b.html#74 IBM Doing Some Restructuring?
https://www.garlic.com/~lynn/2012b.html#90 IBM Doing Some Restructuring?
https://www.garlic.com/~lynn/2012b.html#99 New theory of moral behavior may explain recent ethical lapses in banking industry
https://www.garlic.com/~lynn/2012c.html#2 Occupy the SEC (Securities & Exchange Commission)
https://www.garlic.com/~lynn/2012c.html#5 Too big not to fail
https://www.garlic.com/~lynn/2012c.html#19 Occupy the SEC Pitches An Extreme Makeover of Wall Street
https://www.garlic.com/~lynn/2012c.html#54 PC industry is heading for more change
https://www.garlic.com/~lynn/2012c.html#62 Why Is Finance So Big?
https://www.garlic.com/~lynn/2012d.html#13 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#14 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#48 IBM cuts more than 1,000 U.S. workers
https://www.garlic.com/~lynn/2012d.html#71 Memory versus processor speed
https://www.garlic.com/~lynn/2012e.html#91 The Fractal Organization: Creating sustainable organizations with the Viable System Model
https://www.garlic.com/~lynn/2012f.html#35 Inequality and Investment Bubbles: A Clearer Link Is Established
https://www.garlic.com/~lynn/2012f.html#66 Predator GE: We Bring Bad Things to Life
https://www.garlic.com/~lynn/2012f.html#74 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012f.html#86 The Dangers of High-Frequency Trading; Wall Street's Speed Freaks
https://www.garlic.com/~lynn/2012g.html#7 Adult Supervision
https://www.garlic.com/~lynn/2012g.html#16 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012g.html#20 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012g.html#22 Psychology Of Fraud: Why Good People Do Bad Things

--
virtualization experience starting Jan1968, online at home since Mar1970

Why So Many Formerly Successful Companies Are Failing

Refed: **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 2 june, 2012
Subject: Why So Many Formerly Successful Companies Are Failing
Blog: Facebook
Why So Many Formerly Successful Companies Are Failing
http://www.businessinsider.com/why-so-many-formerly-successful-companies-are-failing-2012-6

There was something about successful companies were not failing from doing the wrong thing ... but continuing to do the "once" right thing when environment has changed ... aka not adapting to changing environment. This may have been aided and abetted by rise of MBA focused on wringing every dollar out of existing operations.

Recent posts about Gerstner's "resurrection of IBM" ... changing from product focused company to a service focused company ... recent revenue was 83% software & services and 17% was everything else:
https://www.garlic.com/~lynn/2012d.html#54 ,
https://www.garlic.com/~lynn/2012g.html#34 ,
https://www.garlic.com/~lynn/2012g.html#72

and there is recent thread about failure of the US steal industry:
https://www.garlic.com/~lynn/2012g.html#73

--
virtualization experience starting Jan1968, online at home since Mar1970

Monopoly/ Cartons of Punch Cards

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Monopoly/ Cartons of Punch Cards
Newsgroups: alt.folklore.computers
Date: Sun, 03 Jun 2012 09:59:27
"Charles Richmond" <numerist@aquaporin4.com> writes:
IMHO, that is because colleges (by and large) are doing a *rotten* job of educating programmers. Colleges "dumb down" the courses so the students who can *afford* to attend college... will *not* flunk out. IMHO.

in 90s working with (very) large midwest state univ system ... they said that in effect most states were bankrupt ... basically shifting money around to obfiscate the fact ... and that they had shifted their budget from 85% provided by the state legislature to 11% provided by the state legislature.

during the same period there has been significant decline & ranking of public school academic scores ... so the dumbing down wasn't just of those attending college ... but across everybody in the public school system (the midwest state univ system said that they had to dumb down freshman entering courses three times since the 60s; again not just because they were taking broader spectrum of students ... but that *ALL* public school students had dumbed down). A few past posts mentioning "dumbed down":
https://www.garlic.com/~lynn/2006t.html#21 Are there more stupid people in IT than there used to be?
https://www.garlic.com/~lynn/2007j.html#45 IBM Unionization
https://www.garlic.com/~lynn/2007o.html#33 EZPass: Yes, Big Brother IS Watching You!
https://www.garlic.com/~lynn/2011l.html#20 Selectric Typewriter--50th Anniversary
https://www.garlic.com/~lynn/2011p.html#125 UC-Berkeley and other public Ivies' in fiscal peril

there was recent news items that increase in student tuition at US univ (several times that of inflation) over the past couple decades correlates with increase in the Federal student loan program ... implying the univ. were soaking the students for every penny they could get (however, increase in student tuition also corresponds to decreased state funding ... would need aggregate funding per student both tuition and other sources ... and how much was purely trying to soak the students for every penny).

Along with this there seems to have been increase in recruiting foreign (non-resident) students ... since they could charge significantly more. There is also they are getting foreign students with much higher academic credentials ... when we did some technical recruiting in the 90s ... all the 4.0 students at cal. univ were foreign. Also there was comment that over 50% all advanced technical degrees (science, engineering, mathematics) at colleges and univ. in state of cal. went to foreign students. This has come up in some of my comments jobs going to foreign students ... that the internet bubble in silicon valley wouldn't have been possible w/o all those foreign advance degree graduates (since the number of native born were insufficient).

There was report from the 1990 census that 50% of US 18yr olds were functionally illiterate ... some past posts:
https://www.garlic.com/~lynn/2002k.html#45 How will current AI/robot stories play when AIs are real?
https://www.garlic.com/~lynn/2003i.html#28 Offshore IT
https://www.garlic.com/~lynn/2003i.html#45 Offshore IT
https://www.garlic.com/~lynn/2003i.html#55 Offshore IT
https://www.garlic.com/~lynn/2003p.html#33 [IBM-MAIN] NY Times editorial on white collar jobs going
https://www.garlic.com/~lynn/2004b.html#42 The SOB that helped IT jobs move to India is dead!
https://www.garlic.com/~lynn/2004d.html#18 The SOB that helped IT jobs move to India is dead!
https://www.garlic.com/~lynn/2004h.html#18 Low Bar for High School Students Threatens Tech Sector
https://www.garlic.com/~lynn/2005e.html#48 Mozilla v Firefox
https://www.garlic.com/~lynn/2005g.html#43 Academic priorities
https://www.garlic.com/~lynn/2006g.html#20 The Pankian Metaphor
https://www.garlic.com/~lynn/2006l.html#63 DEC's Hudson fab
https://www.garlic.com/~lynn/2007g.html#7 U.S. Cedes Top Spot in Global IT Competitiveness
https://www.garlic.com/~lynn/2007i.html#24 John W. Backus, 82, Fortran developer, dies
https://www.garlic.com/~lynn/2007i.html#79 John W. Backus, 82, Fortran developer, dies
https://www.garlic.com/~lynn/2007j.html#31 IBM Unionization
https://www.garlic.com/~lynn/2007j.html#51 IBM Unionization
https://www.garlic.com/~lynn/2007j.html#80 IBM Unionization
https://www.garlic.com/~lynn/2007j.html#85 IBM Unionization
https://www.garlic.com/~lynn/2007k.html#10 IBM Unionization
https://www.garlic.com/~lynn/2007k.html#30 IBM Unionization
https://www.garlic.com/~lynn/2007k.html#34 IBM Unionization
https://www.garlic.com/~lynn/2007k.html#42 IBM Unionization
https://www.garlic.com/~lynn/2007n.html#68 Poll: oldest computer thing you still use
https://www.garlic.com/~lynn/2007o.html#21 U.S. Cedes Top Spot in Global IT Competitiveness
https://www.garlic.com/~lynn/2007o.html#22 U.S. Cedes Top Spot in Global IT Competitiveness
https://www.garlic.com/~lynn/2007v.html#29 folklore indeed
https://www.garlic.com/~lynn/2008.html#39 competitiveness
https://www.garlic.com/~lynn/2008k.html#5 Republican accomplishments and Hoover
https://www.garlic.com/~lynn/2008q.html#55 Can outsourcing be stopped?
https://www.garlic.com/~lynn/2008s.html#20 Five great technological revolutions
https://www.garlic.com/~lynn/2009s.html#43 Larrabee delayed: anyone know what's happening?
https://www.garlic.com/~lynn/2010.html#38 Happy DEC-10 Day
https://www.garlic.com/~lynn/2010o.html#66 They always think we don't understand
https://www.garlic.com/~lynn/2011.html#80 Chinese and Indian Entrepreneurs Are Eating America's Lunch
https://www.garlic.com/~lynn/2011k.html#48 50th anniversary of BASIC, COBOL?
https://www.garlic.com/~lynn/2011l.html#36 The Next Convergence: The Future of Economic Growth in a Multispeed World
https://www.garlic.com/~lynn/2011n.html#18 Great Brian Arthur article on the Second Economy

--
virtualization experience starting Jan1968, online at home since Mar1970

Monopoly/ Cartons of Punch Cards

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Monopoly/ Cartons of Punch Cards
Newsgroups: alt.folklore.computers
Date: Sun, 03 Jun 2012 10:20:52
"Charles Richmond" <numerist@aquaporin4.com> writes:
And yet the Republicans are *still* saying that business does *not* need any regulation!!! Even in the late 1800's, Congress had to *make* the railroads reform their way of doing business and accept the newer safety measures. The recent recession/depression was *caused* by lack of regulation of the mortgage industry, and the credit default swaps resulting from it. And since Europe invested in it, this became a world-wide disaster.

a couple recent posts
https://www.garlic.com/~lynn/2012.html#57 The Myth of Work-Life Balance
https://www.garlic.com/~lynn/2012.html#62 Railroaded

on railroaded book
https://www.amazon.com/Railroaded-Transcontinentals-Making-America-ebook/dp/B0051GST1U

and get significant sense of the above book just from the kindle "sample"

article about the book here:
http://phys.org/news/2012-01-railroad-hyperbole-echoes-dot-com-frenzy.html

big secret to accumulating great wealth from railroad was getting the governments to put up as much money as possible, skimming it off and then walking away.

along the way there was enormous bribery and corruption of legislatures at both the federal and state levels.

Mortgage backed securities CDOs ... and being able to pay the rating agencies for triple-A (even when both the sellers and rating agencies knew they weren't worth triple-A) allowed mortgages to be unloaded with regard to loan quality and/or borrower's qualification. There were $27T of these securitized loan CDOs done during the bubble
Evil Wall Street Exports Boomed With 'Fools' Born to Buy Debt
https://www.bloomberg.com/news/articles/2008-10-27/evil-wall-street-exports-boomed-with-fools-born-to-buy-debt

and from:
https://www.amazon.com/Two-Trillion-Dollar-Meltdown-Rollers-ebook/dp/B0097DE7DM/

pg54:
The relentless deregulation drive that started during the Reagan administration steadily shifted lending activities to the purview of nonregulated entities, until by 2006, only about a quarter of all lending occurred in regulated sectors.

... snip ...

there was both an issue of lack of enforcement at traditional sources of mortgages, regulated depository institutions that used deposits as source of funds ... and move to using triple-A rated CDOs as source of funding (so almost any street corner operation could be doing mortgages).

and SEC still had authority over fraudulent activity ... and failed to do anything (even if they didn't have other kinds regulatory oversight):

SEC: Taking on Big Firms is 'Tempting,' But We Prefer Picking on Little Guys
http://www.rollingstone.com/politics/blogs/taibblog/sec-taking-on-big-firms-is-tempting-but-we-prefer-whaling-on-little-guys-20120530

from above:
More notoriously, the SEC stood by and did nothing even after the FBI publicly warned that the incidence of so-called "liar's loans" -- mortgage applications in which income levels and other information were not verified -- was "epidemic" and could cause an "economic crisis." The SEC could have walked into any major mortgage lender's office anytime in the five years prior to the 2008 crash and in one afternoon's worth of interviews learned that fraud in the mortgage markets was out of control, but instead they allowed companies like Countrywide and Long Beach to proliferate and pump the economy full of millions of bad loans, nearly destroying the economy.

... snip ...

Securitized mortgages had been used in the S&L crisis to obfuscate fraudulent mortgages ... but w/o the triple-A rating they had very little market. The triple-A rating opened up things to large institutional investors (that were restricted to dealing in triple-A, like large retirement funds) as nearly unlimited source of funds.

#1 on times list of those responsible:
http://content.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877339,00.html
#2 on times list
http://content.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877330,00.html
#3 on times list:
http://content.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877331,00.html
#4 on times list
http://www.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877323,00.html

--
virtualization experience starting Jan1968, online at home since Mar1970

Monopoly/ Cartons of Punch Cards

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Monopoly/ Cartons of Punch Cards
Newsgroups: alt.folklore.computers
Date: Sun, 03 Jun 2012 10:28:15
jmfbahciv <See.above@aol.com> writes:
I vote against anyone on the B of D who may have been part of the that mess.

re:
https://www.garlic.com/~lynn/2012g.html#73 Monopoly/ Cartons of Punch Cards

old wharton business school article ... gone behind paywall but lives free at wayback machine (if you get the wayback welcome screen, clickon the "Impatient!" field at lower middle right)
https://web.archive.org/web/20080606084328/http://knowledge.wharton.upenn.edu/article.cfm?articleid=1933

estimated that 1000 were responsible for 80% of the mess and it would go long ways to correcting the situation if the gov. could figure out how to eliminate them.

#1 on times list of those responsible:
http://content.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877339,00.html
#2 on times list
http://content.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877330,00.html
#3 on times list:
http://content.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877331,00.html
#4 on times list
http://www.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877323,00.html

how about not just the BofD but also the BofD financial audit committee

#2 on the list for actively de-regulation and opposing new regulations

Gramm and the 'Enron Loophole'
http://www.nytimes.com/2008/11/17/business/17grammside.html

from above:
Enron was a major contributor to Mr. Gramm's political campaigns, and Mr. Gramm's wife, Wendy, served on the Enron board, which she joined after stepping down as chairwoman of the Commodity Futures Trading Commission.

... snip ...

and an older article: Phil Gramm's Enron Favor
https://web.archive.org/web/20080711114839/http://www.villagevoice.com/2002-01-15/news/phil-gramm-s-enron-favor/

from above:
A few days after she got the ball rolling on the exemption, Wendy Gramm resigned from the commission. Enron soon appointed her to its board of directors, where she served on the audit committee, which oversees the inner financial workings of the corporation. For this, the company paid her between $915,000 and $1.85 million in stocks and dividends, as much as $50,000 in annual salary, and $176,000 in attendance fees,

... snip ...

and more #3 responsible, Greenspan Slept as Off-Books Debt Escaped Scrutiny
http://www.bloomberg.com/apps/news?pid=20601109&refer=home&sid=aYJZOB_gZi0I

from above:
That same year Greenspan, Treasury Secretary Robert Rubin and SEC Chairman Arthur Levitt opposed an attempt by Brooksley Born, head of the Commodity Futures Trading Commission, to study regulating over-the-counter derivatives. In 2000, Congress passed a law keeping them unregulated.

... snip ...

Brooksley was fairly quickly replaced by Wendy Gramm as head of Commodity Futures Trading Commission, and then after her husband got the regulation exemption in Congress, Wendy resigns to join Enron's board.

--
virtualization experience starting Jan1968, online at home since Mar1970

Monopoly/ Cartons of Punch Cards

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Monopoly/ Cartons of Punch Cards
Newsgroups: alt.folklore.computers
Date: Sun, 03 Jun 2012 11:30:47
jmfbahciv <See.above@aol.com> writes:
I vote against anyone on the B of D who may have been part of the that mess.

re:
https://www.garlic.com/~lynn/2012g.html#73 Monopoly/ Cartons of Punch Cards
https://www.garlic.com/~lynn/2012g.html#77 Monopoly/ Cartons of Punch Cards

also #4 on times list of those responsible ... for lack of enforcing regulation:
http://www.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877323,00.html

besides more recent reference here
https://www.garlic.com/~lynn/2012g.html#76 Monopoly/ Cartons of Punch Cards

SEC had authority to do something about ENRON & WORLDCOM ... but it didn't. Congress then strengthen authority with Sarbanes-Oxley (although it isn't clear whether Congress actually believed SEC would do anything, i.e. if it wasn't doing anything with its current authority, then it would be highly unlikely that it would do anything with additional authority).

looks like even GAO didn't think SEC was doing anything and started doing reports of public company fraudulent financial filings ... even showing uptic after SOX:
http://www.gao.gov/products/GAO-03-395R
http://www.gao.gov/products/GAO-06-678
https://www.gao.gov/products/gao-06-1079sp

in theory, under SOX ... all the executives as well as BofD, would be doing jail time

more recent:

GAO calls on SEC to beef up Finra oversight; Report critical of executive compensation, operations
http://www.investmentnews.com/article/20120531/FREE/120539980

it also came up in the congressional hearings into the Madoff ponzi scheme with the testimony by the person that had tried unsuccessfully for a decade to get SEC to do something about Madoff (when Madoff finally turned himself in, SEC was forced to do something).

misc. other recent posts mentioning (even) GAO critical of SEC lack of enforcement:
https://www.garlic.com/~lynn/2012.html#1 The war on terabytes
https://www.garlic.com/~lynn/2012.html#18 SEC v. Citigroup, How to Avoid (Greater) Disaster
https://www.garlic.com/~lynn/2012.html#26 What's your favorite quote on
"accountability"?
https://www.garlic.com/~lynn/2012.html#70 Regulatory Agency logo
https://www.garlic.com/~lynn/2012b.html#19 "Buffett Tax" and truth in numbers
https://www.garlic.com/~lynn/2012b.html#44 What's the most interesting thing you do in your non-work life?
https://www.garlic.com/~lynn/2012b.html#53 Can America Lead the World's Fight Against Corruption?
https://www.garlic.com/~lynn/2012b.html#54 The New Age Bounty Hunger -- Showdown at the SEC Corral
https://www.garlic.com/~lynn/2012b.html#87 The Benefit and The Burden
https://www.garlic.com/~lynn/2012c.html#0 New theory of moral behavior may explain recent ethical lapses in banking industry
https://www.garlic.com/~lynn/2012c.html#13 Study links ultrafast machine trading with risk of crash
https://www.garlic.com/~lynn/2012c.html#31 US real-estate has lost $7T in value
https://www.garlic.com/~lynn/2012c.html#45 Fannie, Freddie Charge Taxpayers For Legal Bills
https://www.garlic.com/~lynn/2012c.html#54 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#5 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#10 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#12 Gordon Gekko Says
https://www.garlic.com/~lynn/2012d.html#16 IBM cuts more than 1,000 U.S. Workers
https://www.garlic.com/~lynn/2012d.html#39 Fannie and Freddie must go - here's how
https://www.garlic.com/~lynn/2012e.html#30 Senators Who Voted Against Ending Big Oil Tax Breaks Received Millions From Big Oil
https://www.garlic.com/~lynn/2012e.html#57 speculation
https://www.garlic.com/~lynn/2012f.html#66 Predator GE: We Bring Bad Things to Life
https://www.garlic.com/~lynn/2012f.html#74 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012f.html#84 How do you feel about the fact that India has more employees than US?
https://www.garlic.com/~lynn/2012g.html#6 Adult Supervision
https://www.garlic.com/~lynn/2012g.html#59 Why Hasn't The Government Prosecuted Anyone For The 2008 Financial recession?

--
virtualization experience starting Jan1968, online at home since Mar1970

Monopoly/ Cartons of Punch Cards

Refed: **, - **, - **, - **, - **, - **, - **, - **
From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Monopoly/ Cartons of Punch Cards
Newsgroups: alt.folklore.computers
Date: Sun, 03 Jun 2012 12:13:31
jmfbahciv <See.above@aol.com> writes:
It was said in the late 60s and early 70s. that was the era of Viet Nam, higher and higher oil prices, and a couple years later, interest rates which became legal usury. In addition, the auto unions went on strike for almost a year.

Griftopia has chapter on spike of oil over $100 summer of 2008 because of speculators. it had CFTC requiring futures players to have significant positions because otherwise speculators resulted in wild, irrational price swings. then 19 "secret" letters allowed specific speculators to play ... and there was wild, irrational price swings.
https://www.amazon.com/Griftopia-Machines-Vampire-Breaking-ebook/dp/B003F3FJS2

item from last year when senator was slammed for releasing oil activity/transaction data showing speculators causing wild, irrational price swings
http://www.reuters.com/article/2011/08/19/us-cftc-dataleak-idUSTRE77I4NR20110819

... remember it was the head of the CFTC that proposed regulating CDS (which would have helped damped down the financial mess) ... they were almost immediately replaced and bill passed to prevent CFTC from doing anything.

another CFTC oil speculation
http://www.thenation.com/article/159078/will-congress-crack-down-oil-speculators

past posts mentioning oil speculation:
https://www.garlic.com/~lynn/2010p.html#57 TCM's Moguls documentary series
https://www.garlic.com/~lynn/2010q.html#55 Programmer Charged with thieft (maybe off topic)
https://www.garlic.com/~lynn/2011.html#53 What do you think about fraud prevention in the governments?
https://www.garlic.com/~lynn/2011f.html#90 CFTC Limits on Commodity Speculation May Wait Until Early 2012
https://www.garlic.com/~lynn/2011g.html#3 CFTC Limits on Commodity Speculation May Wait Until Early 2012
https://www.garlic.com/~lynn/2011g.html#17 Hey all you Old Geeks (and younger ones too), with gas heading towards $6.00/gal, remote support, satellite offices and home office will become more cost effective
https://www.garlic.com/~lynn/2011k.html#76 FIA shocked and outraged after Senator leaks oil trading data
https://www.garlic.com/~lynn/2011l.html#21 HOLLOW STATES and a CRISIS OF CAPITALISM
https://www.garlic.com/~lynn/2011m.html#18 computer bootlaces
https://www.garlic.com/~lynn/2011n.html#80 A Close Look at the Perry Tax Plan
https://www.garlic.com/~lynn/2011o.html#47 Civilization, doomed?
https://www.garlic.com/~lynn/2011o.html#61 Civilization, doomed?
https://www.garlic.com/~lynn/2011o.html#64 Civilization, doomed?
https://www.garlic.com/~lynn/2012d.html#61 Why Republicans Aren't Mentioning the Real Cause of Rising Prices at the Gas Pump
https://www.garlic.com/~lynn/2012e.html#57 speculation
https://www.garlic.com/~lynn/2012e.html#69 speculation

--
virtualization experience starting Jan1968, online at home since Mar1970

Monopoly/ Cartons of Punch Cards

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Monopoly/ Cartons of Punch Cards
Newsgroups: alt.folklore.computers
Date: Sun, 03 Jun 2012 16:13:20
hancock4 writes:
I think many intelligent people DO understand the concept of creation of wealth.

The problem is that there are varying opinions on how to best go about creating wealth or encouraging others to create wealth. There are also varying opinions on if and how various policies work _against_ the creation of wealth.

There is also the issue of humanitarian policies. We could turn the clock back and deregulation pollution controls and workplace safety, and probably spur a lot of business activity as a result.

But would we be better off?


Stiglitz's Freefall: America, Free Markets, and the Sinking of the World Economy
https://www.amazon.com/Freefall-America-Markets-Sinking-ebook/dp/B0035YDM9E

pg.271
Standard economic theory (the neoclassical model discussed earlier in this chapter) has had little to say about innovation, even though most of the increases in U.S. standards of living in the past hundred years have come from technical progress. As I noted earlier, just as "information" was outside the old models, so too was innovation.

... snip ...

much of the robber baron's period ... as well as the last decade ... wasn't creation of wealth ... but the concentration of wealth

America Is Broken, What Now?
http://globalguerrillas.typepad.com/globalguerrillas/2011/10/journal-why-the-us-middle-class-is-broken.html
taken from this graphic
http://www.nytimes.com/imagepages/2011/09/04/opinion/04reich-graphic.html
part of this article:
http://www.nytimes.com/2011/09/04/opinion/sunday/jobs-will-follow-a-strengthening-of-the-middle-class.html

and

Inequality and Investment Bubbles: A Clearer Link Is Established
http://www.sciencedaily.com/releases/2012/04/120419153917.htm

misc. recent posts mentioning above:
https://www.garlic.com/~lynn/2012.html#1 The war on terabytes
https://www.garlic.com/~lynn/2012.html#3 We are on the brink of a historic decision [referring to defence cuts]
https://www.garlic.com/~lynn/2012.html#30 Age of Greed: The Triumph of Finance and the Decline of America, 1970 to the Present
https://www.garlic.com/~lynn/2012.html#45 You may ask yourself, well, how did I get here?
https://www.garlic.com/~lynn/2012.html#87 The PC industry is heading for collapse
https://www.garlic.com/~lynn/2012d.html#48 IBM cuts more than 1,000 U.S. workers
https://www.garlic.com/~lynn/2012e.html#70 Disruptive Thinkers: Defining the Problem
https://www.garlic.com/~lynn/2012f.html#35 Inequality and Investment Bubbles: A Clearer Link Is Established
https://www.garlic.com/~lynn/2012f.html#77 Vampire Squid

--
virtualization experience starting Jan1968, online at home since Mar1970

Monopoly/ Cartons of Punch Cards

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Monopoly/ Cartons of Punch Cards
Newsgroups: alt.folklore.computers
Date: Sun, 03 Jun 2012 16:49:48
hancock4 writes:
That is a troubling issue, but one that I think is separate than above.

re:
https://www.garlic.com/~lynn/2012g.html#73 Monopoly/ Cartons of Punch Cards

(possibly fallacious) excuse for explosion of the ratio of executive to worker compensation to 400:1 is the Boyd scenario where US military excuse at entry to WW2 was that only very few top generals knew what they were doing and everybody else was with experience of skills ... which then requires rigid, top-down, command and control structure infrastructure (to leverage the few available skills) ... then his observation that the paradidgm was starting to contaminate US corporate culture by the early 80s (with former ww2 military officers climbing corporate executive ladder).

other explanation is simply concentration of wealth from this post
https://www.garlic.com/~lynn/2012g.html#80 Monopoly/ Cartons of Punch Cards

however there is also this about lack of SEC enforcement of any kind
https://www.garlic.com/~lynn/2012g.html#78 Monopoly/ Cartons of Punch Cards

with this:

GAO calls on SEC to beef up Finra oversight; Report critical of executive compensation, operations
http://www.investmentnews.com/article/20120531/FREE/120539980

misc. past posts mentioning the 400:1 executive/worker compensation ratio explosion:
https://www.garlic.com/~lynn/2008i.html#73 Should The CEO Have the Lowest Pay In Senior Management?
https://www.garlic.com/~lynn/2008j.html#24 To: Graymouse -- Ireland and the EU, What in the H... is all this about?
https://www.garlic.com/~lynn/2008j.html#76 lack of information accuracy
https://www.garlic.com/~lynn/2008k.html#71 Cormpany sponsored insurance
https://www.garlic.com/~lynn/2008m.html#25 Taxes
https://www.garlic.com/~lynn/2008m.html#33 Taxes
https://www.garlic.com/~lynn/2008m.html#53 Are family businesses unfair competition?
https://www.garlic.com/~lynn/2008m.html#93 What do you think are the top characteristics of a good/effective leader in an organization? Do you feel these characteristics are learned or innate to an individual?
https://www.garlic.com/~lynn/2008n.html#2 Blinkylights
https://www.garlic.com/~lynn/2008n.html#58 Traditional Approach Won't Take Businesses Far Places
https://www.garlic.com/~lynn/2008q.html#14 realtors (and GM, too!)
https://www.garlic.com/~lynn/2008q.html#17 realtors (and GM, too!)
https://www.garlic.com/~lynn/2008r.html#61 The vanishing CEO bonus
https://www.garlic.com/~lynn/2008s.html#5 Greed - If greed was the cause of the global meltdown then why does the biz community appoint those who so easily succumb to its temptations?
https://www.garlic.com/~lynn/2008s.html#41 Executive pay: time for a trim?
https://www.garlic.com/~lynn/2008s.html#44 Executive pay: time for a trim?
https://www.garlic.com/~lynn/2009.html#50 Greed Is
https://www.garlic.com/~lynn/2009.html#80 Are reckless risks a natural fallout of "excessive" executive compensation ?
https://www.garlic.com/~lynn/2009b.html#25 The recently revealed excesses of John Thain, the former CEO of Merrill Lynch, while the firm was receiving $25 Billion in TARP funds makes me sick
https://www.garlic.com/~lynn/2009b.html#41 The subject is authoritarian tendencies in corporate management, and how they are related to political culture
https://www.garlic.com/~lynn/2009d.html#3 Congress Set to Approve Pay Cap of $500,000
https://www.garlic.com/~lynn/2009e.html#73 Most 'leaders' do not 'lead' and the majority of 'managers' do not 'manage'. Why is this?
https://www.garlic.com/~lynn/2009f.html#2 CEO pay sinks - Wall Street Journal/Hay Group survey results just released
https://www.garlic.com/~lynn/2009g.html#44 What TARP means for the future of executive pay
https://www.garlic.com/~lynn/2009o.html#37 Young Developers Get Old Mainframers' Jobs
https://www.garlic.com/~lynn/2009p.html#48 Opinions on the 'Unix Haters' Handbook
https://www.garlic.com/~lynn/2010d.html#8 search engine history, was Happy DEC-10 Day
https://www.garlic.com/~lynn/2010e.html#39 Agile Workforce
https://www.garlic.com/~lynn/2010f.html#33 The 2010 Census
https://www.garlic.com/~lynn/2010m.html#62 Dodd-Frank Act Makes CEO-Worker Pay Gap Subject to Disclosure
https://www.garlic.com/~lynn/2010m.html#67 Idiotic programming style edicts
https://www.garlic.com/~lynn/2010o.html#22 60 Minutes News Report:Unemployed for over 99 weeks!
https://www.garlic.com/~lynn/2010o.html#59 They always think we don't understand
https://www.garlic.com/~lynn/2010o.html#66 They always think we don't understand
https://www.garlic.com/~lynn/2010o.html#71 They always think we don't understand
https://www.garlic.com/~lynn/2010p.html#10 OODA in highly stochastic environments
https://www.garlic.com/~lynn/2011.html#80 Chinese and Indian Entrepreneurs Are Eating America's Lunch
https://www.garlic.com/~lynn/2011b.html#53 Productivity And Bubbles
https://www.garlic.com/~lynn/2011g.html#13 The Seven Habits of Pointy-Haired Bosses
https://www.garlic.com/~lynn/2011j.html#69 Who was the Greatest IBM President and CEO of the last century?
https://www.garlic.com/~lynn/2011l.html#28 computer bootlaces
https://www.garlic.com/~lynn/2011p.html#147 The Myth of Work-Life Balance
https://www.garlic.com/~lynn/2012.html#25 You may ask yourself, well, how did I get here?
https://www.garlic.com/~lynn/2012.html#26 What's your favorite quote on "accountability"?
https://www.garlic.com/~lynn/2012b.html#12 Sun Tzu, Boyd, strategy and extensions of same
https://www.garlic.com/~lynn/2012b.html#19 "Buffett Tax" and truth in numbers
https://www.garlic.com/~lynn/2012b.html#26 Strategy subsumes culture
https://www.garlic.com/~lynn/2012b.html#31 PC industry is heading for more change
https://www.garlic.com/~lynn/2012b.html#43 Where are all the old tech workers?
https://www.garlic.com/~lynn/2012b.html#44 What's the most interesting thing you do in your non-work life?
https://www.garlic.com/~lynn/2012b.html#90 IBM Doing Some Restructuring?
https://www.garlic.com/~lynn/2012d.html#16 IBM cuts more than 1,000 U.S. Workers
https://www.garlic.com/~lynn/2012e.html#91 The Fractal Organization: Creating sustainable organizations with the Viable System Model
https://www.garlic.com/~lynn/2012f.html#77 Vampire Squid

--
virtualization experience starting Jan1968, online at home since Mar1970

How do you feel about the fact that today India has more IBM employees than US?

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: lynn@garlic.com (Lynn Wheeler)
Date: 3 June, 2012
Subject: How do you feel about the fact that today India has more IBM employees than US?
Blog: IBMers
ref:
https://www.garlic.com/~lynn/2012f.html#84 How do you feel about the fact that India has more employees than US?
https://www.garlic.com/~lynn/2012f.html#87 How do you feel about the fact that India has more employees than US?
https://www.garlic.com/~lynn/2012f.html#90 How do you feel about the fact that India has more employees than US?
https://www.garlic.com/~lynn/2012f.html#92 How do you feel about the fact that India has more employees than US?
https://www.garlic.com/~lynn/2012f.html#95 How do you feel about the fact that India has more employees than US?

Review of Gerstner's "Who says elephants can't dance"
http://www.tdaxp.com/archive/2012/02/10/review-of-who-says-elephants-cant-dance-by-louis-gerstner.html

and Gerstner's "resurrection" of IBM. In my response, I point out Gerstner coming from wallstreet financial industry ... being groomed to take-over as CEO of AMEX.

KKR wins bidding war with AMEX for RJR
https://en.wikipedia.org/wiki/Shearson

Reverse IPO/leverage buyouts are frequently structured that all the debt for the reverse IPO are put on the companies books ... while the people performing the operation take enormous fees & commissions. Company is then expected to service the debit from their operations. Company later does new IPO ... still carrying the original debt. Similar to real-estate speculators ... except subsequent IPO doesn't pay off the original debt (as would happen when speculator flips a house and pays off the original mortgage) ... but stays with the company.

In any case, RJR has trouble servicing the resulting debt (even before new IPO) and KKR hires away Gerstner (from AMEX) to turn around RJR.
https://en.wikipedia.org/wiki/RJR_Nabisco

then IBM's boards hires Gerstner to resurrect IBM
https://en.wikipedia.org/wiki/Louis_V._Gerstner,_Jr.

from above:
In his memoir, Gerstner described the turnaround as difficult and often wrenching for an IBM culture that had become insular and balkanized

... snip ...

During the middle-80s top executives were predicting revenue would double from $60B to $120B mostly on mainframe sales. There was massive internal building program to double mainframe manufacturing capacity ... even when that portion of the market was heading in the other direction. In the early 90s, the company goes into the red ... resulting in the board having to replace existing executive with Gerstner to "resurrect" IBM. Gerstner refocuses the company from hardware products to services. Recent revenue is something like 83% services&software ... with everything else 17% ... including all hardware. Hardware sales is about evenly divided between intel/86, power/risc, and mainframe ... at approx. $5B each (far cry from the $120B in 1990 dollars or over $200B in today's dollars). In any case, the downhill slide to going into the red and requiring resurrection had been in progress for some time.

"Strategic Intuition" does a comparison of Microsoft, Apple, Google and Gerstner's resurrection of IBM:
https://www.amazon.com/Strategic-Intuition-Creative-Achievement-Publishing-ebook/dp/B0097D773O/

Disclaimer ... i did stint as chief scientist at First Data ... slightly garbled here:
https://web.archive.org/web/20190524015712/http://www.ibmsystemsmag.com/mainframe/stoprun/Stop-Run/Making-History/

... which was a 1992 spin-off/IPO from AMEX (of much of the card processing dataprocessing ... was largest IPO up until that time). The CEO of AMEX (at the time of First Data's IPO) was still on First Data's board when I was there.
https://en.wikipedia.org/wiki/First_Data

and then first data is taken private, from above:
On April 2, 2007 it was announced that Kohlberg Kravis Roberts (KKR) had entered an agreement to acquire First Data in one of the largest leveraged buy-outs in history, and on October 1, 2007 KKR officially took over the First Data Corporation. Ric Duques retired, and Michael Capellas, previously the CEO of MCI, Inc., the president of Hewlett-Packard Company, and also the chairman/CEO of the Compaq Computer Corporation was appointed CEO.

... snip ...

Gerstner goes on to be chairman of The Carlyle Group (2003-2008), another large private equity firm.
https://en.wikipedia.org/wiki/Carlyle_Group

For additional trivia & topic drift... Sandy Weill was via'ing with Gerstner for next CEO of AMEX (heir apparent) ...
http://www.counterpunch.org/2012/05/15/why-jamie-dimons-2-billion-gambling-loss-will-not-speed-financial-reform/

the above includes this reference:
Back in 1986, Dimon was the bright young protege of "Sandy" Weill, when he was forced out of American Express in a coup de requin. Master and servant made their way to Baltimore, Maryland, where Weill acquired a storefront moneylending firm called Commercial Credit.

... snip ...

above also characterizes Commercial Credit as loan sharking business.

Sandy Weill goes on to take-over of Citi ... in violation of Glass-Steagall; Greenspan gives Weill an exemption while he lobbies congress to repeal Glass-Steagall (GLBA legislation in 1999)
https://en.wikipedia.org/wiki/Sanford_I._Weill
Weill is on times list of those responsible for financial mess:
http://content.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877329,00.html
lobbying repeal of Glass-Steagall also discussed here:
http://www.pbs.org/wgbh/pages/frontline/shows/wallstreet/weill/

Dimon goes on to be head of JPMorgan/Chase.
https://en.wikipedia.org/wiki/Jamie_Dimon

gerstner posts
https://www.garlic.com/~lynn/submisc.html#gerstner
private equity posts
https://www.garlic.com/~lynn/submisc.html#private.equity

--
virtualization experience starting Jan1968, online at home since Mar1970

Monopoly/ Cartons of Punch Cards

Refed: **, - **, - **, - **, - **, - **, - **, - **
From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Monopoly/ Cartons of Punch Cards
Newsgroups: alt.folklore.computers
Date: Mon, 04 Jun 2012 09:37:12
jmfbahciv <See.above@aol.com> writes:
Some of those people worked in the backrooms and figured out how to game the system. It's part of the activity of futures and commodities. anything Congress tries to do to eliminate "bad" behaviour just opens up new holes which these people develop procedures which will make money. they're paid to do that.

re:
https://www.garlic.com/~lynn/2012g.html#77 Monopoly/ Cartons of Punch Cards

one of the ways of "gaming" the system is insider trading ... either using information and/or generating information.

this reference claims that wallstreet insiders have little to fear from SEC for such activity (doing deals and then generating rumors driving market in desired direction)
http://nypost.com/2007/03/20/cramer-reveals-a-bit-too-much/

frequently related to illegal naked short selling (leveraging insider infomation and/or making deals and then generating information that drives the market in the desired direction)

Accidentally Released - and Incredibly Embarrassing - Documents Show How Goldman et al Engaged in 'Naked Short Selling'
http://www.rollingstone.com/politics/blogs/taibblog/accidentally-released-and-incredibly-embarrassing-documents-show-how-goldman-et-al-engaged-in-naked-short-selling-20120515
Short-selling litigation; An enlightening mistake
http://www.economist.com/node/21555472
Goldman, Merrill E-Mails Show Naked Shorting, Filing Says
http://www.bloomberg.com/news/2012-05-15/goldman-merrill-e-mails-show-naked-shorting-filing-says.html

congress has specifically exempted themselves from such laws ("holes" specifically created for members of congress) ... some recent reports about members of congress who have become rich from insider trading (trading on wallstreet based on secret testimony before congress ... all perfectly permissable under the letter of the law exempting members of congress).

there are also recent reports that too-big-to-fail ... have their fingers into such a large number of different things ... that it is almost impossible for one part of the operation to not have ("insider") information from another part of the operation

misc. past posts
https://www.garlic.com/~lynn/2007f.html#39 Silly beginner questions
https://www.garlic.com/~lynn/2007r.html#27 Default Search Engines are dangerous, Especially Google <- Domain Name Stealers
https://www.garlic.com/~lynn/2008k.html#1 dollar coins
https://www.garlic.com/~lynn/2008k.html#25 IBM's 2Q2008 Earnings
https://www.garlic.com/~lynn/2008n.html#23 Michigan industry
https://www.garlic.com/~lynn/2008n.html#25 Blinkylights
https://www.garlic.com/~lynn/2008n.html#26 Blinkylights
https://www.garlic.com/~lynn/2008n.html#28 Blinkylights
https://www.garlic.com/~lynn/2008n.html#31 Blinkylights
https://www.garlic.com/~lynn/2008n.html#101 Blinkylights
https://www.garlic.com/~lynn/2008o.html#0 Blinkylights
https://www.garlic.com/~lynn/2008o.html#1 illegal naked short selling
https://www.garlic.com/~lynn/2008q.html#50 Obama, ACORN, subprimes (Re: Spiders)
https://www.garlic.com/~lynn/2008s.html#63 Garbage in, garbage out trampled by Moore's law
https://www.garlic.com/~lynn/2009c.html#67 How to defeat new telemarketing tactic
https://www.garlic.com/~lynn/2009d.html#75 Whistleblowing and reporting fraud
https://www.garlic.com/~lynn/2009e.html#13 Should we fear and hate derivatives?
https://www.garlic.com/~lynn/2009f.html#45 Artificial Intelligence to tackle rogue traders
https://www.garlic.com/~lynn/2009o.html#73 IBM Hardware Boss Charged With Insider Trading
https://www.garlic.com/~lynn/2009p.html#8 WSJ.com - IBM Puts Executive on Leave
https://www.garlic.com/~lynn/2009s.html#47 Audits VII: the future of the Audit is in your hands
https://www.garlic.com/~lynn/2010c.html#33 Happy DEC-10 Day
https://www.garlic.com/~lynn/2010h.html#41 Profiling of fraudsters
https://www.garlic.com/~lynn/2010m.html#62 Dodd-Frank Act Makes CEO-Worker Pay Gap Subject to Disclosure
https://www.garlic.com/~lynn/2010p.html#43 WikiLeaks' Wall Street Bombshell
https://www.garlic.com/~lynn/2010p.html#48 WikiLeaks' Wall Street Bombshell
https://www.garlic.com/~lynn/2010p.html#63 TCM's Moguls documentary series
https://www.garlic.com/~lynn/2010q.html#36 Programmer Charged with thieft (maybe off topic)
https://www.garlic.com/~lynn/2010q.html#44 Programmer Charged with thieft (maybe off topic)
https://www.garlic.com/~lynn/2011d.html#26 The first personal computer (PC)
https://www.garlic.com/~lynn/2011e.html#39 Back to architecture: Analyzing NYSE data
https://www.garlic.com/~lynn/2011f.html#35 At least two decades back, some gurus predicted that mainframes would disappear
https://www.garlic.com/~lynn/2011f.html#52 Are Americans serious about dealing with money laundering and the drug cartels?
https://www.garlic.com/~lynn/2011j.html#11 Innovation and iconoclasm
https://www.garlic.com/~lynn/2011j.html#38 Advice from Richard P. Feynman
https://www.garlic.com/~lynn/2011k.html#60 50th anniversary of BASIC, COBOL?
https://www.garlic.com/~lynn/2011l.html#21 HOLLOW STATES and a CRISIS OF CAPITALISM
https://www.garlic.com/~lynn/2011o.html#39 Civilization, doomed?
https://www.garlic.com/~lynn/2011p.html#30 21st Century Management approach?
https://www.garlic.com/~lynn/2012.html#5 We are on the brink of a historic decision [referring to defence cuts]
https://www.garlic.com/~lynn/2012.html#87 The PC industry is heading for collapse
https://www.garlic.com/~lynn/2012b.html#44 What's the most interesting thing you do in your non-work life?
https://www.garlic.com/~lynn/2012c.html#13 Study links ultrafast machine trading with risk of crash
https://www.garlic.com/~lynn/2012e.html#41 Why Are the Fed and SEC Keeping Wall Street's Secrets?
https://www.garlic.com/~lynn/2012g.html#10 Accidentally Released - and Incredibly Embarrassing - Documents Show How Goldman et al Engaged in Naked Short Selling'
https://www.garlic.com/~lynn/2012g.html#12 JPM LOSES $2 BILLION USD!
https://www.garlic.com/~lynn/2012g.html#14 Psychology Of Fraud: Why Good People Do Bad Things

--
virtualization experience starting Jan1968, online at home since Mar1970

Monopoly/ Cartons of Punch Cards

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Monopoly/ Cartons of Punch Cards
Newsgroups: alt.folklore.computers
Date: Mon, 04 Jun 2012 10:00:01
Peter Flass <Peter_Flass@Yahoo.com> writes:
Partly this is size. As the organization gets bigger the pyramid adds more levels. What's the ratio of top executives to employees? Is this now also 400:1?

re:
https://www.garlic.com/~lynn/2012g.html#73 Monopoly/ Cartons of Punch Cards
https://www.garlic.com/~lynn/2012g.html#81 Monopoly/ Cartons of Punch Cards

the Boyd scenario from ww2 was only the few at the very top knew what they were doing (everybody else had no idea) ... requiring a rigid, top-down, command&control structure to direct all the large hordes that had no idea what they were doing. his scenario was that thinking was starting to contaiminate corporate america.

that philosiphy then theoretically ties size of organization to top executive compensation justifying the 400:1 compensation.

the downside is in changing/fluctuating environment ... you may need lots of skills on the spot to adapt to local circumstances. Boyd would use as an example Guderian's verbal orders only during the blitzkrieg ... Guderian was further inciting officiers on the spot (eliminating any worry about after action review, 2nd guessing circumstances). He would also highlight that the German army was 3percent officers while US Army was 11percent officers ... growing to 20percent; large officer core was required to enforce the rigid, top-down command and control structure.

recent posts mentioning Guderian's verbal orders only:
https://www.garlic.com/~lynn/2012.html#45 You may ask yourself, well, how did I get here?
https://www.garlic.com/~lynn/2012b.html#26 Strategy subsumes culture
https://www.garlic.com/~lynn/2012c.html#51 How would you succinctly desribe maneuver warfare?
https://www.garlic.com/~lynn/2012f.html#2 Did they apply Boyd's concepts?

a little more than a decade ago, I reviewed a periodic financial industry publication that gave avg. of large regional banks to avg. of the large national banks for thousands of measures. It turns out that the regional banks were slightly more profitable than the national banks ... implying that the large national banks were already too large (even before repeal of Glass-Steagall kicked in creating too-big-to-fail). An implication was that justification for too-big-to-fail was purely for exploiting the paradigm of top executives compensation proportional to organinational size ... and not justified on any other reason.

Age of Greed: The Triumph of Finance and the Decline of America, 1970 to the Present
https://www.amazon.com/Age-Greed-Triumph-Finance-ebook/dp/B004DEPF6I/

"Age of Greed" talks about major wallstreet players strongly pushing for decades that the gov. should not limit their risky behavior, but were the first in line for bailout every time things collapsed (not being held responsible or accountable for their behavior).

"Zombie Banks"
https://www.amazon.com/Zombie-Banks-Crippling-Bloomberg-ebook/dp/B0060IWMNY
make references to major wallstreet players claiming not knowing what was going on during the financial mess, bubble, meltdown.
"Going Rogue: Share Traders More Reckless Than Psychopaths, Study Shows"
http://www.spiegel.de/international/zeitgeist/going-rogue-share-traders-more-reckless-than-psychopaths-study-shows-a-788462.html
also
http://www.businessinsider.com/study-stock-traders-are-worse-than-psychopaths-2011-9

Earlier reports from 2008 claimed large percentage of wallstreet players were sociopaths, showing no remorse for their activities. Numerous other reports make reference to wallstreet needing enormous amounts of adult supervision. Very much like "Judge Judy" when she asks when can you tell a teenager is lying.

"Age of Greed" has executive compensation being tied to stock price and rising stock market can provide for enormous executive compensation even when the individuals are mediocre or incompetent. The enormous corruption isn't particularly new having been repeated several times over the country's centuries.

misc. recent posts mentioning "Age of Greed"
https://www.garlic.com/~lynn/2012.html#3 We are on the brink of a historic decision [referring to defence cuts]
https://www.garlic.com/~lynn/2012.html#30 Age of Greed: The Triumph of Finance and the Decline of America, 1970 to the Present
https://www.garlic.com/~lynn/2012.html#31 Who originated the phrase "user-friendly"?
https://www.garlic.com/~lynn/2012.html#37 Romney's Opponents Intensify Attacks as Voting Nears
https://www.garlic.com/~lynn/2012.html#40 Age of Greed: The Triumph of Finance and the Decline of America, 1970 to the Present
https://www.garlic.com/~lynn/2012.html#45 You may ask yourself, well, how did I get here?
https://www.garlic.com/~lynn/2012.html#47 Avoiding a lost decade
https://www.garlic.com/~lynn/2012.html#48 Fed's image tarnished by newly released documents
https://www.garlic.com/~lynn/2012.html#57 The Myth of Work-Life Balance
https://www.garlic.com/~lynn/2012.html#62 Railroaded
https://www.garlic.com/~lynn/2012.html#70 Regulatory Agency logo
https://www.garlic.com/~lynn/2012.html#72 Chris Dodd's SOPA crusading
https://www.garlic.com/~lynn/2012.html#77 Age of Greed: The Triumph of Finance and the Decline of America, 1970 to the Present
https://www.garlic.com/~lynn/2012.html#79 Bain: A consulting firm too hot to handle? (Fortune, 1987)
https://www.garlic.com/~lynn/2012.html#87 The PC industry is heading for collapse
https://www.garlic.com/~lynn/2012.html#92 Has anyone successfully migrated off mainframes?
https://www.garlic.com/~lynn/2012.html#95 Can anyone offer some insight
https://www.garlic.com/~lynn/2012b.html#12 Sun Tzu, Boyd, strategy and extensions of same
https://www.garlic.com/~lynn/2012b.html#19 "Buffett Tax" and truth in numbers
https://www.garlic.com/~lynn/2012b.html#29 The speeds of thought, complexities of problems
https://www.garlic.com/~lynn/2012b.html#43 Where are all the old tech workers?
https://www.garlic.com/~lynn/2012b.html#54 The New Age Bounty Hunger -- Showdown at the SEC Corral
https://www.garlic.com/~lynn/2012b.html#74 IBM Doing Some Restructuring?
https://www.garlic.com/~lynn/2012b.html#90 IBM Doing Some Restructuring?
https://www.garlic.com/~lynn/2012b.html#99 New theory of moral behavior may explain recent ethical lapses in banking industry
https://www.garlic.com/~lynn/2012c.html#2 Occupy the SEC (Securities & Exchange Commission)
https://www.garlic.com/~lynn/2012c.html#5 Too big not to fail
https://www.garlic.com/~lynn/2012c.html#19 Occupy the SEC Pitches An Extreme Makeover of Wall Street
https://www.garlic.com/~lynn/2012c.html#54 PC industry is heading for more change
https://www.garlic.com/~lynn/2012c.html#62 Why Is Finance So Big?
https://www.garlic.com/~lynn/2012d.html#13 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#14 PC industry is heading for more change
https://www.garlic.com/~lynn/2012d.html#48 IBM cuts more than 1,000 U.S. workers
https://www.garlic.com/~lynn/2012d.html#71 Memory versus processor speed
https://www.garlic.com/~lynn/2012e.html#91 The Fractal Organization: Creating sustainable organizations with the Viable System Model
https://www.garlic.com/~lynn/2012f.html#35 Inequality and Investment Bubbles: A Clearer Link Is Established
https://www.garlic.com/~lynn/2012f.html#66 Predator GE: We Bring Bad Things to Life
https://www.garlic.com/~lynn/2012f.html#74 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012f.html#86 The Dangers of High-Frequency Trading; Wall Street's Speed Freaks
https://www.garlic.com/~lynn/2012g.html#7 Adult Supervision
https://www.garlic.com/~lynn/2012g.html#16 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012g.html#20 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012g.html#22 Psychology Of Fraud: Why Good People Do Bad Things
https://www.garlic.com/~lynn/2012g.html#73 Monopoly/ Cartons of Punch Cards
https://www.garlic.com/~lynn/2012g.html#80 Monopoly/ Cartons of Punch Cards

--
virtualization experience starting Jan1968, online at home since Mar1970

Monopoly/ Cartons of Punch Cards

Refed: **, - **, - **
From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Monopoly/ Cartons of Punch Cards
Newsgroups: alt.folklore.computers
Date: Mon, 04 Jun 2012 10:18:19
Peter Flass <Peter_Flass@Yahoo.com> writes:
The shuttle was an engineering testbed. We got solutions to a number of problems such as ceramics for the heat-shield, etc. As an development project it wouldn't necessarily be cost-effective. Now we've shut down the program and broken up a team of people with collectively hundreds of years of experience. We should be moving on to the next stage, not closing up shop.

there have been a number of articles about gov. agencies designing projects so pieces are placed in specific congressional districts and/or spread across large number of congressional districts ... in order to guaranteeing congressional continued support.

this is playing out in F35 jet ... effort specifically organized into small number of pieces parceled out into large number of congressional districts ... guaranteeing safe from congressional concelation. This adds significant layer of technical complication to the effort having to coordinate large number of physically separate activity ... which also significantly complicates the integration of the disparate parts from all over. It makes more sense when there are commodity parts that haven't changed for a long time, thoroughly spec'ed and tested ... but it is recipe for disaster when every piece is brand new R&D and then magically expected to all come together perfectly.

in the case of shuttle ... somebody did a parody after the shuttle disaster (with the booster rockets). competitive proposal was single piece booster rocket built near the launch site and booster rocket built in specific congressional district. When Columbus was soliciting Queen Isabel's support ... one of the members of her court convinced her that the ships should be built in the pyrenees ... where the trees grew (rather than building ships in harbor and having to bring the trees down to the harbor). Then for transport to the shore (from the mountains), the ships would be sawed into three pieces, tansported, and then pieced back together (aka in order to transport booster rockets from the site where they were built to the launch site, they had to be built in smaller pieces and then finished assembly at launch).

misc. past posts mentioning shuttle disaster:
https://www.garlic.com/~lynn/2004k.html#62 Xah Lee's Unixism
https://www.garlic.com/~lynn/2011b.html#79 NASA proves once again that, for it, the impossible is not even difficult
https://www.garlic.com/~lynn/2012b.html#0 Happy Challenger Day

misc. past posts mentioning F35:
https://www.garlic.com/~lynn/2009.html#83 F111 related discussion x-over from Facebook
https://www.garlic.com/~lynn/2009.html#86 F111 related discussion x-over from Facebook
https://www.garlic.com/~lynn/2011h.html#43 Happy 100th Birthday, IBM!
https://www.garlic.com/~lynn/2011i.html#79 Innovation and iconoclasm
https://www.garlic.com/~lynn/2011k.html#42 Senator urges DoD: Do better job defending F-35
https://www.garlic.com/~lynn/2011k.html#49 50th anniversary of BASIC, COBOL?
https://www.garlic.com/~lynn/2011l.html#63 UAV vis-a-vis F35
https://www.garlic.com/~lynn/2011m.html#4 UAV vis-a-vis F35
https://www.garlic.com/~lynn/2011n.html#20 UAV vis-a-vis F35
https://www.garlic.com/~lynn/2011o.html#10 UAV vis-a-vis F35
https://www.garlic.com/~lynn/2011p.html#73 A question for the readership
https://www.garlic.com/~lynn/2012.html#42 Drones now account for one third of U.S. warplanes
https://www.garlic.com/~lynn/2012b.html#0 Happy Challenger Day
https://www.garlic.com/~lynn/2012b.html#13 We are on the brink of a historic decision [referring to defence cuts]
https://www.garlic.com/~lynn/2012b.html#15 The PC industry is heading for collapse
https://www.garlic.com/~lynn/2012b.html#75 The Winds of Reform
https://www.garlic.com/~lynn/2012c.html#56 Update on the F35 Debate
https://www.garlic.com/~lynn/2012d.html#60 Memory versus processor speed
https://www.garlic.com/~lynn/2012d.html#73 Execution Velocity
https://www.garlic.com/~lynn/2012e.html#25 We are on the brink of historic decision [referring to defence cuts]
https://www.garlic.com/~lynn/2012e.html#72 Sunday Book Review: Mind of War
https://www.garlic.com/~lynn/2012f.html#25 Time to competency for new software language?
https://www.garlic.com/~lynn/2012f.html#68 'Gutting' Our Military
https://www.garlic.com/~lynn/2012f.html#88 Defense acquisitions are broken and no one cares

--
virtualization experience starting Jan1968, online at home since Mar1970

Monopoly/ Cartons of Punch Cards

From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Monopoly/ Cartons of Punch Cards
Newsgroups: alt.folklore.computers
Date: Mon, 04 Jun 2012 10:21:38
jmfbahciv <See.above@aol.com> writes:
the thing to do is figure out who is doing this stuff now and where they're parking their keesters. That will point to the next trillion dollar mess in 10 or 20 years.

re:
https://www.garlic.com/~lynn/2012g.html#77 Monopoly/ Cartons of Punch Cards
https://www.garlic.com/~lynn/2012g.html#78 Monopoly/ Cartons of Punch Cards

there are claims since this tens of trillion dollar mess wasn't cleaned up ... just covered up by some superficial actions ... that current mess has yet to play out.

--
virtualization experience starting Jan1968, online at home since Mar1970

Monopoly/ Cartons of Punch Cards

Refed: **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **, - **
From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Monopoly/ Cartons of Punch Cards
Newsgroups: alt.folklore.computers
Date: Mon, 04 Jun 2012 10:33:29
hancock4 writes:
In economics, there is something known as the "law of diminishing returns". In it, economies of scale drop down as volume increases, but only up to a point. Costs bottom out and rise again. This is because organizations that get so large become hard to manage and control. (Was IBM too big in the 1980s? Was it true that new ideas only "escaped" from it?)

re:
https://www.garlic.com/~lynn/2012g.html#84 Monopoly/ Cartons of Punch Cards

part of Boyd scenario is that individual at top of large organization is so far removed ... that they loose feel for what is going on ... just assuming that things continue business as usually and can't recognize when things are changing.

this is related long winded post from yesterday in linkedin IBM group
https://www.garlic.com/~lynn/2012g.html#82 How do you feel about the fact that today India has more IBM employees than US?

Review of Gerstner's "Who says elephants can't dance"
http://www.tdaxp.com/archive/2012/02/10/review-of-who-says-elephants-cant-dance-by-louis-gerstner.html

and Gerstner's "resurrection" of IBM. In my response, I point out Gerstner coming from wallstreet financial industry ... being groomed to take-over as CEO of AMEX.

KKR wins bidding war with AMEX for RJR
https://en.wikipedia.org/wiki/Shearson

Reverse IPO/leverage buyouts are frequently structured that all the debt for the reverse IPO are put on the companies books ... while the people performing the operation take enormous fees & commissions. Company is then expected to service the debit from their operations. Company later does new IPO ... still carrying the original debt. Similar to real-estate speculators ... except subsequent IPO doesn't pay off the original debt (as would happen when speculator flips a house and pays off the original mortgage) ... but stays with the company.

In any case, RJR has trouble servicing the resulting debt (even before new IPO) and KKR hires away Gerstner (from AMEX) to turn around RJR.
https://en.wikipedia.org/wiki/RJR_Nabisco

then IBM's boards hires Gerstner to resurrect IBM
https://en.wikipedia.org/wiki/Louis_V._Gerstner,_Jr.

from above:
In his memoir, Gerstner described the turnaround as difficult and often wrenching for an IBM culture that had become insular and balkanized

... snip ...

During the middle-80s top executives were predicting revenue would double from $60B to $120B mostly on mainframe sales. There was massive internal building program to double mainframe manufacturing capacity ... even when that portion of the market was heading in the other direction. In the early 90s, the company goes into the red ... resulting in the board having to replace existing executive with Gerstner to "resurrect" IBM. Gerstner refocuses the company from hardware products to services. Recent revenue is something like 83% services&software ... with everything else 17% ... including all hardware. Hardware sales is about evenly divided between intel/86, power/risc, and mainframe ... at approx. $5B each (far cry from the $120B in 1990 dollars or over $200B in today's dollars). In any case, the downhill slide to going into the red and requiring resurrection had been in progress for some time.

"Strategic Intuition" does a comparison of Microsoft, Apple, Google and Gerstner's resurrection of IBM:
https://www.amazon.com/Strategic-Intuition-Creative-Achievement-Publishing-ebook/dp/B0097D773O/

Disclaimer ... i did stint as chief scientist at First Data ... slightly garbled here:
https://web.archive.org/web/20190524015712/http://www.ibmsystemsmag.com/mainframe/stoprun/Stop-Run/Making-History/

... which was a 1992 spin-off/IPO from AMEX (of much of the card processing dataprocessing ... was largest IPO up until that time). The CEO of AMEX (at the time of First Data's IPO) was still on First Data's board when I was there.
https://en.wikipedia.org/wiki/First_Data

and then first data is taken private, from above:
On April 2, 2007 it was announced that Kohlberg Kravis Roberts (KKR) had entered an agreement to acquire First Data in one of the largest leveraged buy-outs in history, and on October 1, 2007 KKR officially took over the First Data Corporation. Ric Duques retired, and Michael Capellas, previously the CEO of MCI, Inc., the president of Hewlett-Packard Company, and also the chairman/CEO of the Compaq Computer Corporation was appointed CEO.

... snip ...

Gerstner goes on to be chairman of The Carlyle Group (2003-2008), another large private equity firm.

For additional trivia & topic drift... Sandy Weill was via'ing with Gerstner for CEO of AMEX ...
http://www.counterpunch.org/2012/05/15/why-jamie-dimons-2-billion-gambling-loss-will-not-speed-financial-reform/

the above includes this reference:
Back in 1986, Dimon was the bright young protege of "Sandy" Weill, when he was forced out of American Express in a coup de requin. Master and servant made their way to Baltimore, Maryland, where Weill acquired a storefront moneylending firm called Commercial Credit.

... snip ...

above also characterizes Commercial Credit as loan sharking business.

Sandy Weill goes on to take-over of Citi ... in violation of Glass-Steagall; Greenspan gives Weill an exemption while he lobbies congress to repeal Glass-Steagall (GLBA legislation in 1999)
https://en.wikipedia.org/wiki/Sanford_I._Weill
Weill is on times list of those responsible for financial mess:
http://content.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877329,00.html
lobbying repeal of Glass-Steagall also discussed here:
http://www.pbs.org/wgbh/pages/frontline/shows/wallstreet/weill/

Dimon goes on to be head of JPMorgan/Chase.
https://en.wikipedia.org/wiki/Jamie_Dimon

gerstner posts
https://www.garlic.com/~lynn/submisc.html#gerstner
private equity posts
https://www.garlic.com/~lynn/submisc.html#private.equity

--
virtualization experience starting Jan1968, online at home since Mar1970

Monopoly/ Cartons of Punch Cards

From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: Re: Monopoly/ Cartons of Punch Cards
Newsgroups: alt.folklore.computers
Date: Mon, 04 Jun 2012 10:42:32
re:
https://www.garlic.com/~lynn/2012g.html#87 Monopoly/ Cartons of Punch Cards

another part from the 80s that I've periodically repeated was senior disk engineer got talk scheduled at annual, world-wide, internal communication group conference and opened the talk with the statement that the communication group was going to be responsible for the demise of the disk division. The issue was that the communication group had stranglehold on mainframe datacenters (corporate strategic responsibility for everything that crossed the datacenter walls), they were trying to protect their terminal emulation install base and aggressively opposing all forms of client/server and distributed computing. The disk division was starting to see drop in disk sales as data was fleeing the data center to more distributed computing friendly platforms (and top corporate executives were fairly oblivious to what was happening). The disk division had developed several products to address the situation, but they were constantly vetoed by the communication group (that owned responsibility for everything that crossed the datacenter walls).

misc. past posts mentioning terminal emulation
https://www.garlic.com/~lynn/subnetwork.html#emulation

--
virtualization experience starting Jan1968, online at home since Mar1970

FAA air traffic facility consolidation effort already late

Refed: **, - **, - **, - **, - **, - **, - **, - **
From: Anne & Lynn Wheeler <lynn@garlic.com>
Subject: FAA air traffic facility consolidation effort already late
Newsgroups: alt.folklore.computers
Date: Mon, 04 Jun 2012 12:04:03
FAA air traffic facility consolidation effort already late
http://www.fiercegovernmentit.com/story/faa-air-traffic-facility-consolidation-effort-already-late/2012-06-02?utm_medium=nl&utm_source=internal

past posts mentioning trouble FAA air traffic modernization programs ... and/or other federal dataprocessing modernization
https://www.garlic.com/~lynn/99.html#177 S/360 history
https://www.garlic.com/~lynn/2002b.html#6 Microcode?
https://www.garlic.com/~lynn/2004e.html#44 Infiniband - practicalities for small clusters
https://www.garlic.com/~lynn/2005.html#37 [OT?] FBI Virtual Case File is even possible?
https://www.garlic.com/~lynn/2005s.html#21 MVCIN instruction
https://www.garlic.com/~lynn/2007o.html#43 Flying Was: Fission products

recent posts mentioning spreading Success of Failure culture in federal projects (beltway bandits and large system integrators realizing that they can make more money from a series of failures that getting it right the first time):
https://www.garlic.com/~lynn/2012b.html#14 The PC industry is heading for collapse
https://www.garlic.com/~lynn/2012b.html#15 The PC industry is heading for collapse
https://www.garlic.com/~lynn/2012b.html#39 PC industry is heading for more change
https://www.garlic.com/~lynn/2012b.html#42 Strategy subsumes culture
https://www.garlic.com/~lynn/2012b.html#76 IBM Doing Some Restructuring?
https://www.garlic.com/~lynn/2012b.html#80 U.S. Cybersecurity Debate Risks Leaving Critical Infrastructure in the Dark
https://www.garlic.com/~lynn/2012b.html#86 Spontaneous conduction
https://www.garlic.com/~lynn/2012d.html#36 McCain calls for U.S.-led airstrikes in Syria
https://www.garlic.com/~lynn/2012d.html#42 China's J-20 Stealth Fighter Is Already Doing A Whole Lot More Than Anyone Expected
https://www.garlic.com/~lynn/2012d.html#44 Faster, Better, Cheaper: Why Not Pick All Three?
https://www.garlic.com/~lynn/2012d.html#57 Study Confirms The Government Produces The Buggiest Software
https://www.garlic.com/~lynn/2012d.html#60 Memory versus processor speed
https://www.garlic.com/~lynn/2012e.html#20 Are mothers naturally better at OODA because they always have the Win in mind?
https://www.garlic.com/~lynn/2012e.html#70 Disruptive Thinkers: Defining the Problem
https://www.garlic.com/~lynn/2012e.html#71 Disruptive Thinkers: Defining the Problem
https://www.garlic.com/~lynn/2012e.html#104 Time to Think ... and to Listen
https://www.garlic.com/~lynn/2012f.html#44 Time to Think ... and to Listen
https://www.garlic.com/~lynn/2012f.html#82 Defense budget casualties light on civilian side
https://www.garlic.com/~lynn/2012f.html#88 Defense acquisitions are broken and no one cares

--
virtualization experience starting Jan1968, online at home since Mar1970


previous, next, index - home