Friday, January 22, 2010

Bono & My-Ex

This short film was produced for the Irish Film Board’s Virtual Cinema Scheme last year. The premise of this entertaining video is “just when you thought you’d closed the book on that relationship, a rockstar comes and stirs it all up….”

Thursday, January 21, 2010

Why Mortgage Modification Isn't Working. The loan adjustment success rate is just 1%.

Last year more than two million Americans lost their homes to foreclosure. This year that number is expected to be even higher.

Foreclosure takes a huge toll on homeowners and their families, and sends shock waves throughout the economy. Yet since the start of the recession in 2007, more than five million homes have been taken back by lenders. The Center for Responsible Lending estimates that as many as 13 million more homes could fall into foreclosure over the next five years.

To combat the foreclosure epidemic, the Obama administration created the Home Affordable Modification Program (HAMP) last February. As part of this program, the Treasury Department plans to spend up to $75 billion in financing mortgage "modifications" for struggling homeowners.

The modification process changes the terms of the mortgage with the aim of making it more affordable, typically by reducing a borrower's interest rate, lowering his monthly payment, or waiving or reducing past charges. Unfortunately, HAMP has had less than stellar results.

Since the program began, more than three million homeowners have become eligible for assistance. In turn, mortgage servicers have reached out to these borrowers, initiating the modification process. Roughly 760,000 homeowners have received loan modifications on a trial basis. But just 31,000 modifications have been made permanent.

That's a success rate of just 1%. This means that up to 99% of eligible homeowners struggling with their mortgage payments have been unable thus far to modify their loans.

A big reason for HAMP's limited success is that the government is suffocating banks with counterproductive accounting rules. Under current law, if a bank modifies a mortgage it must record the write-down as an expense on its books. For example, if a homeowner's monthly mortgage payment is reduced by $400 per month for 24 months, the bank has to report that it "lost" $9,600 ($400 times 24 months).

The bank, though, didn't lose any money—it's still scheduled to receive the totality of the loan principal, just less interest.

This rule, for obvious reasons, makes banks reluctant to modify. They don't want to take the "loss," which can get very big for larger mortgages with long modified periods. So there's a huge financial disincentive to offer modification.

The incentives are misaligned elsewhere, as well. Mortgages are often sold by the original lender to a third-party investor. Problem is, it's often not in the interest of that outside firm to modify the original loan. In fact, mortgage servicers get additional fees if a home forecloses. Similarly, if a mortgage has been folded in with other loans as part of a larger financial device, such as a mortgage-backed security, modification could reduce the monthly cash stream that device generates.

Another obstacle comes from auditors and regulators, who are imposing an ever-increasing load of paperwork on customers and banks looking to modify. In many cases, there are more forms needed to modify a loan than to get a mortgage in the first place.

Finally, regulators haven't done enough to protect banks from "strategic defaulters"—that is, homeowners who aren't facing financial difficulty but purposely underpay (or stop paying) their mortgages in the hopes of getting a modification. Strategic defaulters suck away bank resources and attention, making it that much harder to service people facing true hardship.

At ING Direct we have over 2,500 modified mortgages on our books. And our redefault rate for loans that were modified six months ago or more is 8%—substantially lower than the average for government-guaranteed loans of 44%-53% and the overall industry average of 25%.

We, like other banks, are doing our best to keep people in their homes. But the government has to help—not by passing out more dollars, but by bringing some common sense to the rules of the game.

The Treasury Department is aiming for three million to four million permanent mortgage modifications by 2012. To get anywhere close to that number—and to prevent this country from sliding even deeper into a recession—regulators need to modify the modification process.

Mr. Kuhlmann is CEO of ING Direct USA.

Obama Versus Bush on Spending

'If Massachusetts puts Brown in, it's a message of 'that's enough.' Let's stop the giveaways and let's get jobs going."

Marlene Connolly is a 73-year-old Massachusetts Democrat who cast her first vote for a Republican in supporting Scott Brown. Her quote and story comes to us via the New York Times, but she stands out for this reason: She shows us that those who actually cast ballots in the Bay State did so because they are frustrated with the administration's unrestrained federal spending and failed economic recovery policies.

And here's what Washington needs to keep in mind as it debates the meaning of Massachusetts. Ramming health care through now won't insulate Democrats from voter ire in November. It will feed a fire over spending that is already blistering them.

But don't take my word for it. Consider that the administration is now busy scrambling to find a way to dodge responsibility for its own reckless fiscal record. That much was on display recently when David Axelrod, a political strategist for the president, penned an opinion piece in the Washington Post that took aim directly at me.

Mr. Axelrod wrote that no one is entitled to his own facts, even as he argued that George W. Bush is responsible for Barack Obama's deficits. He argued that Mr. Bush forced the hand of this administration by leaving office in the midst of a sharp recession.

That argument won't fly for two reasons. First, at some point this administration has to take responsibility for itself. It's also not even close to accurate. Consider that from Jan. 20, 2001, to Jan. 20, 2009, the debt held by the public grew $3 trillion under Mr. Bush—to $6.3 trillion from $3.3 trillion at a time when the national economy grew as well.

By comparison, from the day Mr. Obama took office last year to the end of the current fiscal year, according to the Office of Management and Budget, the debt held by the public will grow by $3.3 trillion. In 20 months, Mr. Obama will add as much debt as Mr. Bush ran up in eight years.

Mr. Obama's spending plan approved by Congress last February calls for doubling the national debt in five years and nearly tripling it in 10.

Mr. Bush's deficits ran an average of 3.2% of GDP, slightly above the post World War II average of 2.7%. Mr. Obama's plan calls for deficits that will average 4.2% over the next decade.

Team Obama has been on history's biggest spending spree, which has included a $787 billion stimulus, a $30 billion expansion of a child health-care program, and a $410 billion federal spending bill that increased nondefense discretionary spending 10% for the last half of fiscal year 2009. Mr. Obama also hiked nondefense discretionary spending another 12% for fiscal year 2010.

Mr. Bush did move to give voters more control over their tax dollars. Both his Social Security reform ideas and the drug program he created offered templates for driving federal spending curves in the right direction, counter to what Democrats wanted to do.

Democrats, for example, proposed creating a prescription drug program as an alternative to the one Mr. Bush proposed that would have cost a projected $800 billion over 10 years. The Bush drug benefit was originally expected to cost half that amount and today costs a third less than what it was initially expected to cost because it uses market forces to drive prices down.

Mr. Axelrod claims the pork-laden stimulus package has been a success. But Mr. Obama told Americans that if it were passed, unemployment wouldn't rise above 8%. It is now 10%. The president also said it would create 3.7 million jobs, 90% of which would be in the private sector. By Mr. Obama's standards, the stimulus failed miserably.

Mr. Bush did sign the Troubled Asset Relief Program (TARP) into law and loaned $240 billion to banks. But those loans are being returned at a profit to the Treasury. Rather than using those funds to pay down the deficit, Mr. Obama wants to use them for new spending. What's more, he has lavished some $320 billion from TARP on car companies, union allies, and pet causes that will never be fully returned.

Mr. Axelrod boasts Mr. Obama's proposed health reforms will "not add to the federal deficit." But if that turns out to be true, it will only be because Massachusetts voters just elected a senator who promises to vote against those reforms.

In going after Mr. Bush's fiscal record, Mr. Axelrod unwittingly revealed why Democrats are losing. Mr. Obama and congressional Democrats have made a mess of the nation's finances and are desperate to pin the blame on someone else. It's not likely to work.

Even in deep blue Massachusetts, voters aren't standing idly by while the administration puts the nation on a dangerous trajectory. When Democrats lose a state they carried by 26 points a little more than a year ago, very little is safe for Mr. Obama's party this fall.

Mr. Rove, the former senior adviser and deputy chief of staff to President George W. Bush, is the author of the forthcoming book "Courage and Consequence" (Threshold Editions).

Monday, January 18, 2010

The Roots of Obama Worship

BY James W. Ceaser

On gospel, Abba and the death of the record: an audience with Brian Eno

He's been a Roxy original, the inventor of 'ambient', Bowie's muse, the brain in Talking Heads and U2's 'fifth man'. Now Eno tells us where he's heading next

brian-eno-ambient-studio

Brian Eno in his studio. Photograph: Harry Borden

When influential music website Pitchfork listed its 100 greatest albums of the 1970s – which in certain other lists is calculated to be the greatest decade for rock music – the modestly immodest, driven, musical non-musician Brian Eno was directly and indirectly involved in at least a quarter of them, including the number one, Low, on which he collaborated with a nomadic, post-"Fame" David Bowie and the producer Tony Visconti. As an intellectually mobile loner, scene-setter, systems lover, obstinate rebel, techno-prophet, sensual philosopher, courteous progressive, close listener, gentle heretic, sound planner, adviser explorer, pedant and slick conceptual salesman, and devoted fan of the new, undrab and surprising, wherever it fell between John Cage and Little Richard, or Duchamp and doo wop, or Mondrian and Moog, Eno busily and bossily remodelled pop music during the 70s. He looked at what the Velvet Underground, Can, Steve Reich and the Who had done, went forth and multiplied. Eno created an atmosphere, and helped determine what the history of electronic music was between the avant garde 1950s and the pop 21st century.

He demonstrated – as an abstract part of the early and surreal Roxy Music, the evocative Bowie Berlin trilogy Heroes/Low/Lodger, the nervy NY Talking Heads, as a floating collaborator with Nico, John Cale, Robert Wyatt, Cluster, Robert Fripp, Kevin Ayers, Jon Hassell and Harold Budd, as stern futurist mentor to Devo and Ultravox, as discerning curator of the beautifully conceived contemporary music label Obscure, as careful discoverer of the pulseless, wordless, eventless, timeless music he lovingly called "ambient" – that pop music was where you could be the kind of artist he wanted to be. In 1981, he designed the influential sound and content of My Life in the Bush of Ghosts with David Byrne – the prestigious culmination of his solo and group work in the 1970s, the studio combining of inner space, other worlds, random impressions, scrupulous visions, found sound, taped memories, cut-up text, stolen rhythms, daring edits, painted space, original borrowing, inquisitive permutations, mutant gospel and electronic interference.Then there was U2 and recently, as if relishing the snobbish horror of those who dismiss U2 as pompous irritants, he's attended to another ambitious four-piece male rock group with delusions of splendour, Coldplay, producing their last multi-million selling album and now, at the age of 61, finishing their next. A mischievous ghost of the glammed up art pop star Eno that was first noticed as part of the theatre of Roxy Music now haunts the sound and image of the two biggest rock bands in the world who would claim to be, in fact, post-Eno as much as post-punk. Coldplay didn't really belong anywhere before Eno apart from inside their own success. Now they have attached themselves via Eno to a very particular history of avant pop practice. Eno himself is prone to chuckle good naturedly when faced with bemusement at his connection to Coldplay.

He stays behind the scenes, more likely to curate an art festival or present a public lecture on something to do with pleasure, beauty, atheism, perfume or nuclear disarmament than appear to have anything to do with rock or pop music. If Roxy Music are ever spotted together on stage, he will be somewhere else, searching for something new to astound him. Much, naturally, has changed since the volatile, fussy, sublime Eno of For Your Pleasure, Here Come The Warm Jets, Discreet Music, Heroes and Once in a Lifetime, but he's still talking about what he does, and why, working out his place, the place of art, the history of progress, the enigma of meaning, the mechanics of creativity, the mystery of aesthetics, reluctant to think too much about his past in case, as he says, he starts to feel "useless awe towards his former self" but politely prepared to look back at his work if he thinks someone might find it useful. When you meet him to discuss something or other to do with his always perfectly organised research and development thoughts about something or other, you arrive as he is finishing one conversation with someone about, say, how technology changes the way our brains work, and as you leave someone else is arriving for a conversation about, say, the shrinking divisions between art and science. Or how Jeremy Clarkson almost moved into the house next to his office which was previously owned by Jason Donovan.

I talked with him as part of a series of conversations that were filmed for a BBC Arena documentary.

On talking: 1

"I heard a recording that had been made of me 35 years ago chatting with some friends and I thought the tape must have sped up because I sounded so fast. When ­others spoke, they were at a normal speed. It was me, I was speaking so fast. What I find both disappointing and reassuring is that I was saying exactly those things I will be saying today. I don't know what to make of that. A few different references, but the basic ideas haven't changed at all. No difference whatsoever! I suppose it's good to see I've been consistent as sometimes over the years it seems as though it's all been a bit incoherent, a bit of this, a bit of that, a while doing this, then one of those, followed by three of those. It seems all over the place when I'm doing it. Listening to me now talking then suggests there has been a pattern."

On the intensity of ideas

"If you grow up in a very strong religion like Catholicism you certainly cultivate in yourself a certain taste for the intensity of ideas. You expect to be engaged with ideas strongly whether you are for or against them. If you are part of a religion that very strongly insists that you believe then to decide not to do that is quite a big hurdle to jump over. You never forget the thought process you went through. It becomes part of your whole intellectual picture."

On listening

"If you think of the mid- to late-50swhen all of this started to happen for me, the experience of listening to sound was so different from now. Stereo didn't exist. If you listened to music outside of church, apart from live music, which was very rare, it was through tiny speakers. It was a nice experience but a very small experience. So to go into a church, which is a specially designed and echoey space, and it has an organ, and my grandfather built the organ in the church where we went, suddenly to hear music and singing was amazing. It was like hearing someone's album on a tiny transistor radio and then you go and see them in a 60,000-seater. It's huge by comparison. That had a lot to do with my feeling about sound and space, which became a big theme for me. How does space make a difference to sound, what's the difference between hearing something in this room and then another room. Can you imagine other rooms where you can hear music? It also made a difference to how I feel about the communality of music in that the music I liked the most, singing in church, was done by a group of people who were not skilled – they were just a group of people, I knew them in the rest of the week as the coal man and the baker."

On destiny

"It was a dilemma for me at the end of my time at school. Am I going into music or painting ? The Who were important to me when I was working out whether I would go into fine art or popular art. I felt they had found an important position between the two. Then the Velvet Underground came along and also made it clear how you could straddle the two somehow. It helped make my mind up to go into music."

On recording

"I came out of this funny place where I was interested in the experimental ideas of Cornelius Cardew, John Cage and Gavin Bryars, but also in pop music. Pop was all about the results and the feedback. The experimental side was interested in process more than the actual result – the results just happened and there was often very little control over them, and very little feedback. Take Steve Reich. He was an important composer for me with his early tape pieces and his way of having musicians play a piece each at different speeds so that they slipped out of synch.

"But then when he comes to record a piece of his like, say, Drumming, he uses orchestral drums stiffly played and badly recorded. He's learnt nothing from the history of recorded music. Why not look at what the pop world is doing with recording, which is making incredible sounds with great musicians who really feel what they play. It's because in Reich's world there was no real feedback. What was interesting to them in that world was merely the diagram of the piece, the music merely existed as an indicator of a type of process. I can see the point of it in one way, that you just want to show the skeleton, you don't want a lot of fluff around it, you just want to show how you did what you did.As a listener who grew up listening to pop music I am interested in results. Pop is totally results-oriented and there is a very strong feedback loop. Did it work? No. We'll do it differently then. Did it sell? No. We'll do it differently then. So I wanted to bring the two sides together. I liked the processes and systems in the experimental world and the attitude to effect that there was in the pop, I wanted the ideas to be seductive but also the results."

On being like nothing else

"In my house in Oxfordshire, we have this big, beautiful Andrew Logan sculpture of a lovely Pegasus with blue glass wings. When I get a taxi from the station, a driver will always comment on it because it is so striking. What they often say is, 'What does that stand for then?' Or, 'What does that mean?', based on the idea that something exists because it has to tell you something, or it refers to something else, and I realise that this notion is foreign to me. The earliest paintings I loved were always the most non-referential paintings you can imagine, by painters such as Mondrian. I was thrilled by them because they didn't refer to anything else. They stood alone and they were just charged magic objects that did not get their strength from being connected to anything else."

On singing

"I belong to a gospel choir. They know I am an atheist but they are very tolerant. Ultimately, the message of gospel music is that everything's going to be all right. If you listen to millions of gospel records – and I have – and try to distil what they all have in common it's a sense that somehow we can triumph. There could be many thousands of things. But the message… well , there are two messages… one is a kind of optimism for the future rather than a pessimism. Gospel music is never pessimistic, it's never 'oh my god, its all going down the tubes', like the blues often is. Gospel music is always about the possibility of transcendence, of things getting better. It's also about the loss of ego, that you will win through or get over things by losing yourself, becoming part of something better. Both those messages are completely universal and are nothing to do with religion or a particular religion. They're to do with basic human attitudes and you can have that attitude and therefore sing gospel even if you are not religious."

On the synthesiser: 1

"One of the important things about the synthesiser was that it came without any baggage. A piano comes with a whole history of music. There are all sorts of cultural conventions built into traditional instruments that tell you where and when that instrument comes from. When you play an instrument that does not have any such historical background you are designing sound basically. You're designing a new instrument. That's what a synthesiser is essentially. It's a constantly unfinished instrument. You finish it when you tweak it, and play around with it, and decide how to use it. You can combine a number of cultural references into one new thing."

On the synthesiser: 2

"Instruments sound interesting not because of their sound but because of the relationship a player has with them. Instrumentalists build a rapport with their instruments which is what you like and respond to. If you were sitting down now to design an instrument you would not dream of coming up with something as ridiculous as an acoustic guitar. It's a strange instrument, it's very limited and it doesn't sound good. You would come up with something much better. But what we like about acoustic guitars is players who have had long relationships with them and know how to do something beautiful with them. You don't have that with synthesisers yet. They are a very new instrument. They are constantly renewing so people do not have time to build long relationships with them. So you tend to hear more of the technology and less of the rapport. It can sound less human. However ! That is changing. And there is a prediction that I made a few years ago that I'm very pleased to see is coming true – synthesisers that have inconsistency built into them. I have always wanted them to be less consistent. I like it that one note can be louder than the note next to it."

On the naming of things

"A way to make new music is to imagine looking back at the past from a future and imagine music that could have existed but didn't. Like East African free jazz, which as far as I know does not exist. To some extent, this was how ambient music emerged. My interest in making music has been to create something that does not exist that I would like to listen to, not because I wanted a job as a musician. I wanted to hear music that had not yet happened, by putting together things that suggested a new thing which did not yet exist. It's like having a ready-made formula if you are able to read it. One of the innovations of ambient music was leaving out the idea that there should be melody or words or a beat… so in a way that was music designed by leaving things out – that can be a form of innovation, knowing what to leave out. All the signs were in the air all around with ambient music in the mid 1970s, and other people were doing a similar thing. I just gave it a name. Which is exactly what it needed. A name. A name. Giving something a name can be just the same as inventing it. By naming something you create a difference. You say that this is now real. Names are very important."

On talking: 2

"I like to talk about all sorts of things. I've never seen the downside of it. I've never minded the egghead tag. It makes sense with my physiognomy anyway. I've fought for years the idea that rock and popular art is only about passion and fashion and nothing to do with thinking and examining and if you do think there is something suspicious about you."

On hindsight

"Instead of shooting arrows at someone else's target, which I've never been very good at, I make my own target around wherever my arrow happens to have landed. You shoot your arrow and then you paint your bulls eye around it, and therefore you have hit the target dead centre."

On a celebration of human frailty

"The other day I heard a band who had the worst singer, the most out of time drummer and most out of tune guitarist I've ever heard on a professional record, and I thought, at last, the reaction against pro-tools perfection has set in. A pro-tools engineer would have sorted it all out, but this band was an actual celebration of human frailty. It was so rough it was really encouraging."

On Abba

"In the 70s, no one would admit that they liked Abba. Now it's fine. It's so kitsch. Kitsch is an excuse to defend the fact that they feel a common emotion. If it is kitsch. you put a sort of frame around something – to suggest you are being ironic. Actually, you aren't. You are really enjoying it. I like Abba. I did then and I didn't admit it. The snobbery of the time wouldn't allow it. I did admit it when I heard 'Fernando'; I could not bear to keep the secret to myself anymore and also because I think there is a difference between Swedish sentimentality and LA sentimentality because the Swedish are so restrained emotionally. When they get sentimental it's rather sweet and charming. What we really got me with "Fernando" was what the lower singer was doing, I don't know her name. I spent months trying to learn that. It's so obscure what she's doing and very hard to sing. And then from being a sceptic I went over the top in the other direction. I really fell for them."

On Frank Zappa

"Zappa was important to me because I realised I didn't have to make music like he did. I might have made a lot of music like he did if he had not done it first and made me realise that I did not want to go there. I did not like his music but I am grateful that he did it. Sometimes you learn as much from the things you don't like as from the things you do like. The rejection side is as important as the endorsement part. You define who you are and where you are by the things that you know you are not. Sometimes that's all the information you have to go on. I'm not that kind of person. You don't quite know where you are but you find yourself in the space left behind by the things you've rejected."

On working with U2 and Coldplay at the same time

"It was fine. A few jokes. I felt like a ­philanderer who was with another woman and might make a slip and call her by the wrong name in bed. I had one computer that had all of the Coldplay stuff and all the U2 stuff. I had to very carefully label each folder because I was paranoid that I might end up with the same basic track for each group and I wouldn't notice until it was too late. There was a chance the same track might have appeared on both albums."

On ego

"Bono commits the crime of rising above your station. To the British, it's the worst thing you can do. Bono is hated for doing something considered unbecoming for a pop star – meddling in things that apparently have nothing to do with him. He has a huge ego, no doubt about it. On the other hand, he has a huge brain and a huge heart. He's just a big kind of person. That's not easy for some to deal with. They don't mind in Italy. They like larger-than-life people there. In most places in the world they don't mind him. Here, they think he must be conning them."

On reporting in the 1990s that there was too much music being released and he was not going to add to it any more

"I didn't think it through to be honest."

On the end of an era

"I think records were just a little bubble through time and those who made a living from them for a while were lucky. There is no reason why anyone should have made so much money from selling records except that everything was right for this period of time. I always knew it would run out sooner or later. It couldn't last, and now it's running out. I don't particularly care that it is and like the way things are going. The record age was just a blip. It was a bit like if you had a source of whale blubber in the 1840s and it could be used as fuel. Before gas came along, if you traded in whale blubber, you were the richest man on Earth. Then gas came along and you'd be stuck with your whale blubber. Sorry mate – history's moving along. Recorded music equals whale blubber. Eventually, something else will replace it."