Skip to main content

BlackBerry Crumble?

BlackBerry's network was down during much of the past week - this affected academics, teenage texters, as well as City professionals and businesspeople who rely heavily on their BlackBerrys.  See here for some funny tweets on the outage.

This is yet more bad news for Research in Motion, the company which owns the BlackBerry brand.  First, there is the competition, with  the iPhone 4 proving to be a big hit with consumers (click here).  Second, there was the negative publicity during Britain's summer riots, with many rioters using their BlackBerrys to co-ordinate looting (click here).

BlackBerry's masterclass in how not to do PR
BlackBerry's network failure would have had a detrimental effect on teenage texters. A recent study found that the average American girl sends 4,000 texts per month!  Niall Ferguson has recently argued that texting is making kids stupid.  He has suggested that parents remove mobile devices from their kids and send them to book camp, where they spend two weeks reading and discussing classic literature.  I agree that technology is affecting the  ability of the current generation to think, read and write.  More importantly, however, texting etc. distracts and shortens attention spans. 

Popular posts from this blog

Bitcoin Bubble?

According to Robert Shiller , speaking at Davos, Bitcoin is a perfect example of a bubble - story here . Shiller sees Bitcoin as a backwards step in the evolution of money.   George Selgin , a free banker, takes an opposing view - click here .  Although he doesn't believe that Bitcoin is money, he sees its development as a fascinating turn in the evolution of money. In particular, he lauds the fact that Bitcoin production is constrained and cannot be infinite. There is a short video below where Bitcoin explain how it works.

How Valuable Are Connections?

Daron Acemoglu, Simon Johnson, Amir Kermani, James Kwak and Todd Mitton have written a paper on whether firms connected to Timothy Geithner benefited from these connections. They do so by looking at how stocks of these firms reacted to the announcement that he was a nominee for Treasury Secretary in November 2008. They find that there were large abnormal returns for connected firms. Below is the paper's abstract and the full paper is available here . The announcement of Timothy Geithner as nominee for Treasury Secretary in November 2008 produced a cumulative abnormal return for financial firms with which he had a connection. This return was about 6% after the first full day of trading and about 12% after ten trading days. There were subsequently abnormal negative returns for connected firms when news broke that Geithner's confirmation might be derailed by tax issues. Excess returns for connected firms may reflect the perceived impact of relying on the advice of a small ne...

Boom and Bust: A Global History of Financial Bubbles

Boom and Bust: A Global History of Financial Bubbles, co-authored with my colleague Will Quinn , is forthcoming in August. It is published by Cambridge University Press and is available for pre-order at Amazon , Barnes and Noble , Waterstones and Cambridge University Press .