Bad News About Inflation

The summary that you're likely to read in the paper today about the news contained in the recent observations of the Consumer Price Index is that 'inflation declined notably.' This is simply wrong. The new information revealed by these numbers is that prices increased at a faster rate between February to March. To be precise, they increased at a faster rate between February and March of this year than between February and March last year.

~4 minutes

Juice the Profits

A new report has an update on decisions at Silicon Valley Bank: “[E]xecutives knew early on that higher interest rates could jeopardize the bank’s future earnings. Instead of shifting course to mitigate that risk, they doubled down on a strategy to deliver near-term profits...”

~2 minutes

Cockpit Insecurity

If you were a pilot, how would you feel about being told that the copilot who will be flying with you is fun to talk to but sometimes lies convincingly?

Microsoft is already rolling out products that use the AI systems it licensed from OpenAI. On, it has been offering something that it calls “Copilot” for a couple of years. I’ve tried it twice and each time decided I’m better off flying solo.

Microsoft has just announced a new “Security Copilot.” This could turn out badly.

~5 minutes

If your AI is so great at coding, why is your software so buggy?

After feeding the hype about the terrifying power of artificial intelligence, Sam Altman, the CEO of OpenAI, now confronts the downside of unrealistic expectations. Last week, he disclosed a bug in OpenAI’s software that leaked sensitive user information. The natural response is the question posed in the title. If his AI systems are so powerful that they can read and write code, why didn’t his team use AI to spot and fix the problem in its own software?

~5 minutes

Lazy Looting

In my last post I wrote, "lazy insiders could just lend to a corporation they control, have it pay them a huge salary, then declare bankruptcy when the loan proceeds are all gone." But of course, there is an even lazier strategy. Hire your son a Senior V.P. and pay him a $3.5 million; and pay your brother-in-law $2.3 million as a consultant.

~2 minutes