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Posts for January 8, 2009
  • Posted 1/8/09 at 6:19 PM
  • Made-Off
That’s Rich

The latest Madoff victim is someone who actually deserves it. Marc Rich, the commodities trader who fled to Switzerland in the eighties to escape prosecution for evading more than $48 million in taxes and running illegal oil deals (and was later pardoned by President Clinton), had $10 to $15 million invested with Old Berns, his office confirmed today. Will Rich be applying for SIPC help to recover a percentage of funds? The idea makes even the Times snicker: "'I don’t think you’ll ever see Marc Rich personally,' said John F. Fornaciari, a Washington defense lawyer at Sheppard Mullin, who had to stifle a laugh thinking about the legal complications stemming from the flight from justice and the contested pardon." [NYT]

  • Posted 1/8/09 at 6:00 PM
  • Made-off

The Wisdom of Bernie Madoff: ‘Look at Every Day As Another New Adventure in Your Life’

Fox Business News tonight will air a vacation video of Bernie Madoff relaxing on a yacht, visiting a winery, and hanging in Saint-Tropez with now-deceased real-estate developer Norman F. Levy and his wife, who were one of Madoff's biggest clients, and, they thought, closest friends. In the video, Madoff offers this touching toast at Norman's birthday celebration:

The most important thing I would say, and that’s been demonstrated more recently, is enjoy every moment of your life and don’t take anything for granted. But more importantly, take every day as it comes and look at every day as another new adventure in your life. I don’t know anyone that has demonstrated a joie de vivre like you have. You are an inspiration to all of us.

Let this be a lesson to us all: Don't take anything for granted. Especially your money.

Scenes of Madoff in Happier Times [DealBook/NYT]
  • Posted 1/8/09 at 5:50 PM
  • Media Deathwatch

Magazine Readers Can’t Afford a Country Home

In today’s media world, second-home mags are shuttering, celebrity magazines are downsizing, and the New York Times receives more attention and speculation. Sigh. Commence.

Read more »

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  • Posted 1/8/09 at 5:27 PM
  • The Greatest Depression

The Complete John Paulson

We at Intel have a come-hither go-away relationship with hedge-funder John Paulson. On the one hand, we find the way he made billions of dollars off the financial meltdown — essentially, other people's grief and misery — repellent and vaguely unethical, like he "bought insurance policies on houses he didn’t own along the Indian Ocean just moments before the tsunami hit," as Gary Weiss puts it in his comprehensive portrait of Paulson in the February issue of Portfolio. On the other hand, it was pretty smart. And we don't find him unsexy … at least, we didn't think we did, until we read Weiss's description of him.

Paulson is in his mid-fifties, hair thinning at the top just a bit, with a slight paunch that he fights by jogging in Central Park … He is of medium height, medium build, medium disposition. He favors old-fashioned tortoiseshell bifocals and dark-gray suits

Okay, so maybe it was the billions of dollars that we found alluring. We're only human. But to be fair, that's all there is to Paulson, at least the way it seems from reading this story. He went straight from business school into the highest-grossing sector of his field, and has been hopscotching after the money ever since. There's no personality in evidence, no there-there. He doesn't watch birds or catch fish or practice Christian Science, like that other Paulson we love to hate. So what is it that drove Paulson to become an empty shell of a human being, driven solely by the desire to attract more lucre? Daddy issues, of course. Actually, granddaddy issues. His grandfather, Arthur Boklan, was a banker at a Wall Street firm who prospered, amazingly, during the Great Depression.

Read more »

Ana Ortiz Is Pregnant!

The Ugly Betty star and her husband, rocker Noah Lebenzon, are expecting their first child in July. OMG, do you think they'll write in a second surrogate pregnancy for Wilhelmina Slater?! Never mind, you don't know what we're talking about. [People]

  • Posted 1/8/09 at 5:00 PM
  • Neighborhood Watch
Alice Tully Hall Will No Longer Give That Retro ‘Great Society’ Feeling

One of the pleasures of going to Lincoln Center has always been that mid-sixties time warp it affords, where you feel like any minute LBJ and Ladybird, Truman Capote and Kay Graham, and Frank and Mia are going to pop around the corner. Certainly Alice Tully Hall, with its mod wood paneling, used to give that feeling. The renovation, set to open next month, looks gorgeous, yes. But it also looks like the 21st century! Boo. [Curbed]

  • Posted 1/8/09 at 4:39 PM
  • Choosing Your Battles Wisely
Congressman Conyers Opposes Sanjay Gupta, Bestows Peace Prize on Paul Krugman

"I join in opposition with respected Noble Peace Prize award wining economist Paul Krugman, who has very serious concerns with having Dr. Gupta be the nation's Surgeon General." —An altogether awful sentence from Representative John Conyers's letter to his Democratic colleagues. [HuffPo]

  • Posted 1/8/09 at 4:20 PM
  • Early and Often

Sarah Palin Wants to Be Bitter About Caroline Kennedy

In a videotaped interview full of gripes, excuses, and criticisms, Sarah Palin sets her sights on another seemingly untested woman trying to prove herself: Caroline Kennedy. Palin perceives that Kennedy has been receiving better treatment than she did (though the two have been compared) at the hands of the media:

“I’ve been interested to see how Caroline Kennedy will be handled and if she will be handled with kid gloves or if she will be under such a microscope,” Palin told conservative filmmaker John Ziegler during an interview Monday for his upcoming documentary film, How Obama Got Elected. Excerpts from the interview were posted on YouTube Wednesday evening. “It’s going to be interesting to see how that plays out and I think that as we watch that we will perhaps be able to prove that there is a class issue here also that was such a factor in the scrutiny of my candidacy versus, say, the scrutiny of what her candidacy may be.”

Let's parse this. »

  • Posted 1/8/09 at 3:35 PM
  • The Human Cost
Obama Requests Stay of Execution for Rabbit-Ear Televisions

We know we've got big struggle and sacrifice ahead, but if you're a proselytizing HD nerd, those sacrifices will cut particularly deep: "President-elect Barack Obama is urging Congress to postpone the Feb. 17 switch from analog to digital television broadcasting" because the Commerce Department has run out of money to subsidize digital-TV converter boxes for all the analog users still out there, like your grandparents. And if the transition goes forward and your Nana doesn't get a coupon for a converter box, she might not be able to watch Wheel of Fortune. And Obama doesn't want her to be sad. [AP]

  • Posted 1/8/09 at 3:10 PM
  • Early and Awesome

Is President Bush Drinking Again?

Wait, what was Diane Weist doing there?

Wait, what was Diane Weist doing there?Photo: Getty Images

That's the only explanation we can come up with for what he said to Al Sharpton in Philadelphia today, at a "roundtable discussion on the gains made by urban public schools": "I want to thank very much the Reverend Al Sharpton. Now, some of you are probably about to fall out of your chair when you know that Al and I have found common ground. ... See, he cares just as much as I care about making sure every child learns to read, write, and add and subtract. And I want to thank you for your leadership on this issue, and I appreciate you."

President Bush Discusses No Child Left Behind [WhiteHouse.gov]


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  • Posted 1/8/09 at 2:29 PM
  • Mouth Manes
Breaking: Brad Pitt’s Mustache Totally Unnecessary for the Role

HA. We knew Brad Pitt was only pretending he needed a mustache for Inglourious Basterds: "Emanuel Millar, the head of the film’s hair department, said he was surprised when Mr. Pitt showed up to shoot avec mustache and insisted on keeping it despite the fact that it was not true to the period." [NYT, as always a little late to the trend.] Related: The Neo-Stache Era

  • Posted 1/8/09 at 2:20 PM
  • Made-off

West Village Bohemians to Hang Madoff in Effigy

Inveterate New York cabaret singer Cynthia Crane and her playwright husband, Ted Story, sent out an invitation recently for a "moving out party" at their 1855 townhouse on West 11th Street: "THE PARTY GOES ON! SURE HOPE YOU ARE COMING!" the invitation said, and went on:

"How could we possibly explain why we would leave our beloved home of 40 years and all the other changes which we will be making in our lives, without sharing our tale of woe? So I'll say it once, get it over with, then on with the show. Our nemesis was Bernard L. Madoff. It's probably enough to say that name, for you to understand the magnitude of the disaster that has befallen our entire family. We are bloody but unbowed. I am blessed with my family and my dear husband, Ted Story. We have our health, we have each other, and we will survive. PLEASE join us for a last fling ... give this 1855 Grand Dame a proper send off. Madoff will be hung in effigy. There will be Ponzi Punch and some kind of prison food yet to be determined. (The wonderful Carolyn Montgomery and Lea Forant of Café Forant will perform their magic and keep us all from starving). So come on down."

But for all that jauntiness, "It's like opening my veins," Crane told us in an e-mail.
  • Posted 1/8/09 at 1:55 PM
  • Blog-Stained Wretches
Backlash at Gawker Over Travolta Coverage Spreads

As some Gawker commenters complain that the site has been too cruel to the grieving Travoltas, the London Independent wonders whether the site has "lost its mojo." Ugh, again with this. But on the exciting side, they quoted Daily Intel, and Nick Denton called us "pompous!" A new twist! [Independent]

  • Posted 1/8/09 at 1:30 PM
  • In Other News

Outsourcing Tycoon and Flat-World Pioneer Competes With Own Imagination, Loses

Friedman and Raju, chin buddies.

Friedman and Raju, chin buddies.

When news broke yesterday that Ramalinga Raju, the head of India's largest outsourcing company, Satyam Computer Services, had admitted to massive and long-running fraud on the company's balance sheets, our first thought was: Now who are we going to call when we need someone to exasperatedly tell us to try turning our monitor off and then on again? Our second was: Wow, I bet Thomas Friedman used this guy to make an inane point about the new, flat world. We were not disappointed. A Google search instantly scoured the flat globe and found this in a February 2008 exchange between Friedman and one Daniel Pink, education guru and author of A Whole New Mind.

Read more »

  • Posted 1/8/09 at 1:03 PM
  • Neighborhood Watch
Clinton Hill’s Broken Angel on the Selling Block

Here's the latest bit of the long saga of Broken Angel, the arty, ramshackle Clinton Hill landmark, featured in Dave Chappelle's Block Party, whose owners were trying to convert it to quirky condos: They've put the 13,000-square-foot structure up for sale with no asking price. That means any buyer could tear the thing down, and so much for that delightfully wack element of the Clinton Hill landscape. Stay tuned. [Brownstoner]

  • Posted 1/8/09 at 12:45 PM
  • Made-Off

Amazing — Madoff Gets Even More Unsympathetic

Like we needed more proof that Bernie Madoff was a creep. Today's news ensures that whoever has to write the script for the inevitable movie about him is going to have a hell of a time, since every day the real dude shapes up to be about as sympathetic as Al Pacino in The Devil's Advocate crossed with the Javier Bardem character in No Country for Old Men. First off, we find out that the jewelry Madoff mailed to family members for, his lawyer had previously explained, "purely sentimental reasons" was actually worth around a million dollars, which makes him seem like an asset-hoarder/incorrigible criminal as well as a narcissist. (Beyond the $200 mittens, the box contained Cartier watches, a diamond necklace, and an emerald ring, according to the Journal.) To keep him out of jail, his lawyer suggested that they impose tighter bail restrictions, such as putting a custodian in charge of Madoff's assets and having someone monitor his outgoing mail. Which raises a number of questions, such as: Why weren't they doing that in the first place? And then there's the other question: Who puts a million dollars' worth of jewelry in the mail? Grandmas aren’t even supposed to send $20 bills anymore.

Not that they could if they wanted to. »

  • Posted 1/8/09 at 12:00 PM
  • Civics Lesson

Congress Meets Today to Continue Horrible, Outdated Practice

Obama makes a rare speech in New York, at Washington Square Park in September 2007.

Obama makes a rare speech in New York, at Washington Square Park in September 2007.

The House and Senate will convene today, over objections from football fans, to count the electoral votes cast in the presidential election. Unless Dick Cheney decides to unleash on another one of his peers, this should pass without drama. Irritatingly so. New York has seen another election come and go in which its allegiance to the Democratic candidate was obvious from the outset, granting the state about as much attention from the presidential campaigns as Alabama, despite being at least four times as important. With the fate of our electoral votes a given, Obama and McCain rightly focused the lion's share of their energy on a small coterie of swing states. As they promised help to corn growers, automakers, and steelworkers at small-town gatherings and spirited, sometimes menacing rallies, New York's special interests, like hedge-funders and investment bankers, were simply villainized. Sure, we got some scraps of attention here and there — when they wanted our money. Look, we're big fans of the Founding Fathers. Most of their legacies have aged remarkably well (the Bill of Rights kicks ass), and they had some top-notch ideas. But, as New Yorkers are reminded by their unjust marginalization every four years, this Electoral College scheme just isn't one of them.

  • Posted 1/8/09 at 11:49 AM
  • Early and Often

Obama’s ‘Candid’ Rescue-Package Speech Low on Specifics, High on Scripted Rhetoric

Obama’s ‘Candid’ Rescue-Package Speech Low on Specifics, High on Scripted Rhetoric

Photo: Getty Images

At the beginning of the week, we were hearing a lot of noise about how Barack Obama was going to painstakingly explain his $300 billion economic-recovery package today. We heard descriptions like "unprecedented candor" and "patient walk-through." But just now watching it, he didn't really explain any of the logistics at all. In fact, it felt like just another campaign speech. There was nothing major that we didn't already know about his plans and worries from reading the newspapers. "We start 2009 in the midst of a crisis unlike any we have ever seen in our lifetime," he warned (we know — we've been alive this whole time). "On Friday we're likely to learn that we've lost more jobs than any time since World War II." The speech just piled fearmongering upon fearmongering, actually. "If nothing is done, this recession could last for years," he said. "We could lose a generation of potential and promise." He blamed "an era of profound irresponsibility" in Washington and on Wall Street for the economic collapse, and then went on to say what he hoped his plan would do without getting into the nitty-gritty of how. All in all, this was a speech meant to rally confidence, build support for his package, and to lay out reasonable expectations, but it was a bit of a disappointment.

But, oh, he threatened to make Congress work on the weekends. That's fun!

  • Posted 1/8/09 at 11:15 AM
  • It's a Good Thing

Martha Stewart Will Not Let Vicious Jail Lesbians Disrupt Her Workout Routine

Martha Stewart Will Not Let Vicious Jail Lesbians Disrupt Her Workout Routine

Photo: Getty Images

Remember how Martha Stewart emerged from jail in 2004 all slender and svelte? She lost ten pounds during her time out for insider trading and now we know why: She always worked out, her prison friend Lisa Guarino told the Enquirer, even when hordes of menacing lesbians threatened to disrupt her routine!

“Martha and I would do crunches at night. I would count in English and Martha would count in French.”

One visit to the recreation center nearly ended in tragedy when strong-willed Martha shot her mouth off, revealed Lisa. “We were going to the usual room we used and the lights were off, which was odd. Then I looked through the window and I could make out some lesbians having sex.

“I warned Martha not to go in there, but she said it was our time to exercise, swung open the door, turned on the light and said, ‘Chop! Chop! Ladies.’”

Oh, but then the angry lesbians threatened to kill her and she cowered like a wuss. Anyway, because this is the Enquirer, we'd normally take this report with a grain of salt, but somehow, "Martha would count in French" gives it an air of authenticity, n'cest pas?

Snitch Saved Martha Stewart in Prison [National Enquirer]
  • Posted 1/8/09 at 10:45 AM
  • Gossipmonger

‘21’ Had to Go Ahead and Spill That Dubya’s Never Visited

Anne Hathaway cut out early from the Bride Wars premiere party at Tiffany to go smoke and play pool at the Rose Bar. Olivia Palermo's cousin Nevan Donahue, the one who had to pay a fine for spitting on the subway on The City, has a warrant out for his arrest for not meeting the terms of his probation for picking up a hooker in West Palm Beach in 2007. Dubya still hasn't eaten at '21,' unlike every president since FDR. "We're still hoping," said an insider at the restaurant — who you'd think would be relieved to have avoided having to serve O'Douls at his legendary bar, and wouldn't put this out there with only two weeks left until they're in the clear. Agnes Gund may become an arts adviser to Obama or head of the National Endowment of the Arts.

Read more »

  • Posted 1/8/09 at 10:29 AM
  • Haters at the Hedgerow
Noels: ‘Frightfully Badly Behaved Snobs’

Crotchety Colin Tennant, a.k.a. Baron Glenconner, the Scottish aristocrat who bought and developed Mustique, really lays into seasonal residents the Noels in the British documentary The Man Who Bought Mustique. He insults them to their faces, chases them off his property. "These people are worms," he says at one point. "They're terrible snobs, those people. They're frightfully badly behaved snobs." Takes one to know one, right? [Business Sheet]

  • Posted 1/8/09 at 10:10 AM
  • Reality Television

Oh, Real World Brooklyn. What Are You Doing?

Devyn and Chet meet for the first time under that bridge there.

Devyn and Chet meet for the first time under that bridge there.Photo: Courtesy of MTV

Last night we were a little bit blinkered by the fairy-tale version of Brooklyn portrayed on this new season of the Real World. Apparently, in the Country of Kings, everything sold in stores has a big BK logo on it (as does the house’s main door, apparently designed by Brooklyn Industries). Quiet water taxis sail past one’s back door, charming pickup games of stickball — in which eight MTV kids who cannot hit the ball don’t get beat up — are a stone’s throw away, and bands performing at clubs can't stop yelling "Where Brooklyn At?" Junior's Cheesecake in the fridge? Family pizza outings? Will they ever do anything that isn't faux authentic? When we saw the cast at the Notorious premiere last night, we had to ask.

Read more »

  • Posted 1/8/09 at 9:46 AM
  • Great Divorces
Long Island Surgeon Suing for Kidney Is a ‘Wackadoo’

Long Island surgeon Richard Batista gave his wife the gift of life when he donated one of his kidneys to her. But she enjoyed that life a little too much, and maybe had an affair with her physical therapist. So now he's demanding $1.5 million, which is the value of the kidney according to a medical expert he had appraise it. The physical therapist, who denies the affair, sums it up: "I feel bad for her because he's a wackadoo." [NYP]

  • Posted 1/8/09 at 9:30 AM
  • Early and Often

Hillary’s Path to the Nomination Looks So Clear That She’s Already at Work

Lawmakers from both parties told the AP this week that they don't expect any resistance to confirming Hillary Clinton in the State Department, despite fears that her husband's international deal-making might get in the way. Just to make sure, Clinton's been meeting with members of the Senate Foreign Relations Committee to seal the deal. Since everything she's hearing points to go, she's already picking out the appointees she'd like to line up under her.

According to the Times, Hillary plans to keep on the popular current undersecretary for Political Affairs, William Burns. Kurt Campbell, a former Defense official under her husband, will take over East Asian affairs. She'll also bring in Wendy Burns, who advised Bill on North Korean affairs. It's also rumored that Bosnia peace architect Richard Holbrooke will work on India-Pakistan relations, and Middle East expert Dennis Ross will work on Iran — the latter pick underlining Obama's pledge to interact diplomatically with Tehran.

The takeaway from all this? We get to find out who Paterson is going to pick to replace Hillary soon!

Clinton Is Moving to Fill Senior Posts at State Dept. [NYT]
HILLARY POWWOWS WITH KERRY AHEAD OF HEARING [NYP]

  • Posted 1/8/09 at 9:00 AM
  • Early and Awesome

Marty Golden and Hiram Monserrate Have Awkward Moment

People were left wondering if Hiram Monserrate would show up for his Senate swearing-in yesterday after he missed two appearances this week, and in light of the fact that he was arrested last month for assaulting his girlfriend with a broken bottle (an "unfortunate accident," he says). But the Queens Democrat breezed into the chamber at the last minute yesterday and made a beeline straight for Senator Martin J. Golden, who authored a resolution calling on the Senate to bar Monserrate from office until the charges are resolved. According to the Times, Golden was in the middle of shit-talking Monserrate to a group of reporters when he came up and tapped him on the shoulder:

“I don’t think he should be seated,” Mr. Golden said as Mr. Monserrate approached him and extended his hand, apparently taking Mr. Golden by surprise. The two men shook hands and exchanged brief pleasantries.

Well that's awkward. Hiram! Hey! I was just telling everyone what a thug you are! Also kind of unsettling, we think, for Golden. Last thing you want is for a dude with assault charges pending against him to have you in his crosshairs like that.

New Senator, Under Fire, Appears Cool and Collected [NYT]

  • Posted 1/8/09 at 8:00 AM
  • The Sports Section

Giants Playoff Preview: Eli Manning’s Secret Leadership Weapon

Will Leitch’s dispatches from recent visits to the Giants locker room will run every day this week leading up to Sunday’s game against the Philadelphia Eagles. Today: the Eli Manning Quote Bot whirs.

Eli Manning is the reason sports journalism is often so boring.

That’s more of a compliment than it sounds. When Eli was drafted by the Chargers and subsequently traded to the Giants, the fear was that the small-town Southern boy would never hack it in the big city. As famously documented by Michael Lewis, Eli was aloof, mysterious, a little weird. He didn’t come to the NFL as neatly polished as his brother, lacking both Peyton’s rocket arm and obsessive film study habits. Had the Giants drafted Manning simply because of his name? Would anyone consider Eli anything like Peyton otherwise?

Allow me to confirm: When it comes to speaking to the media, Eli is exactly like Peyton. He’s as dull as dirt.

And it serves him very, very well. »

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