First, here is what my early endorsement for the book said (can be found on the inside cover of the book):

“Amazingly useful (and fun to read!) book that does justice to this  somewhat esoteric subject - and this is coming from a long-time  visualization skeptic! What is most impressive that  this book is  actually 'hands-on-useful," not conceptual, with examples usable by  readers in their daily jobs. Chapter 8 on insiders is my favorite!”

What else do I think of the book, apart from the fact that it is awesome? :-)

First, I have to admit that I used to argue with Raffy about usefulness of visualization. I was burned by having to look at bad “visualization” tools and would take an ugly, meaningful table over an ugly, meaningless picture any day now. Thus, I was a visualization skeptic. Buy you know what? The book does justice to visualization really well, and it explains when to use it and when not to use it.

The book gives just the right amount of visualization theory, which is not onerous to read at all (unlike some other books), as well as other visualization basics. The fun starts at Chapter 4, where he covers  the process from data to useful pictures. This actually explains why some visualization are useful and some are not; if you just jam data into a graphing program, there is a good chance that it would not be too useful. If you follow the ideas from Ch4, it is more likely to be useful.

Ch5 and 6 cover network data analysis: logs, packets, flows. This is what most people usually try to visualize; this book goes beyond “worms and scans” into nice visuals of email traffic, wireless and even vulnerability data (I found the latter slightly confusing). Ch7 covers “compliance”, which, in this case, covers all sorts of fun things, from risk assessment to database log visualization.  As I said, Ch8 is my favorite: I agree that insider tracking MAY be the area where visualization tools and approaches beat others. In Ch9, the book covers a few visualization tools; obviously, including the author’s AfterGlow.

So, to summarize, get the book if you have any connection to security AND data analysis. In fact, it is very likely that if you are doing security, you’d have to do data analysis at some point and so will benefit from reading the book. And, yes, it does come with a CD full of visualization tools (DAVIX).

BTW, I am posting it at Amazon as well.

The short one: "A Look at Terrorist Behavior: How They Prepare, Where They Strike," by Brent Smith, National Institute of Justice Journal, No. 260, 2008.

The long one: How Terrorist Groups End: Lessons for Countering al Qa'ida, by Seth G. Jones and Martin C. Libicki, RAND Corporation, 2008.

Warnings About Financial Institutions and Derivatives

Risks of Financial Institutions
The nature of a financial institution is that there are a lot of ways to go to hell in a bucket. You can push credit too far, do a dumb acquisition, leverage yourself excessively---its not just derivatives [that can bring about your downfall].

Maybe it's unique to us, but we're quite sensitive to financial risks. Financial institutions make us nervous when they're trying to do well.

We're exceptionally goosey of leveraged financial institutions. If they start talking about how good their risk management is, it makes us nervous.

We fret way earlier than other people. We've left a lot of money on the table through early fretting. It's the way we are -- you'll just have to live with it.

Derivatives
The system is almost insanely irresponsible. and what people think are fixes aren't realy fixes. It's so complicated I can't do it justice here - but you can't believe the trillions of dollars involved. You can't believe the complexity. You can't believe how difficult it is to do the accounting. You can't believe how big the incentives are to have wishful thinking about values and wishful thinking about ability to clear.

People don't think about the consequences of the consequences. People start by trying to hedge against interest rate changes, which is very difficult and complicated. Then, the hedges make the [reported profits] lumpy. So they use the new derivatives to smooth this. Well, now you've morphed into lying. This turns into a Mad Hatter's Tea Party. This happens to vast, sophisticated corporations.

Somebody has to step in and say, "We're not going to do it - it's just too hard."

I think a good litmus test of the mental and moral quality at any large institutions [with significant derivative exposure] would be to ask them, "Do you really understand your derivatives book?" Anyone who says yes is either crazy or lying.

It's easy to see [the dangers] when you talk about [what happened with] the energy derivatives - they went kerflooey. When [the companies] reached for the assets that were on their books, the money wasn't there. When it comes to financial assets, we haven't had any such denouement and the accountings hasn't changed so the denouement is ahead of us.

Derivatives are full of clauses that say if one party's credit gets downgraded then it has to put up collateral. It's like margin - you can go broke [just putting up more margin]. In an attempt to protect themselves, they've introduced instability. Nobody seems to recognize what a disaster of a system they've created. It's a demented system. 

In engineering people have a big margin of safety. But in the financial world, people don't give a damn about safety. They let it balloon and balloon and balloon. It's aided by false accounting. I'm more pessimistic about this than Warren is.

Accounting for Derivatives
I hate with a passion GAAP [Generally Accepted Accounting Principles] as applied to derivatives and swaps. JP Morgan sold out to this type of accounting to front-end revenues. I think it's a disgrace.

It's bonkers, and the accountants sold out. Everyone caved, adopted loose [accounting] standards, and created exotic derivatives linked to theoretical models. As a result, all kinds of earnings, blessed by accountants, are not really being earned. When you reach for the money, it melts away. It was never there.

It [accounting for derivatives] is just disgusting. It is a sewer, and if I'm right, there will be hell to pay in due course. All of you will have to prepare to deal with a blowup of derivative books.

Likelihood of a Derivatives Blowup
We tried to sell Gen Re's derivatives operations and couldn't, so we started liquidating it. We had to take big markdowns. I would confidently predict that most of the derivatives books of [this country's] major banks cannot be liquidated for anything like what they're carried on the books at. When the denouement will happen and how severe it will be, I don't know. But I fear the consequences could be fearsome. I think there are major problems, worse than in the energy field, and look at the destruction there.

I'll be amazed if we don't have some kind of significant [derivatives-related] blowup in the next five to ten years.

I think we're he only big corporation in America to be running off its derivative book.

It's a crazy idea for people who are already rich -  like Berkshire - to be in this business. It's a crazy business for big banks to be in.

Yo would be disgusted if you had a fair mind and spent a month really delving into a big derivative operation. You would think it was Lewis Carroll. You would think it was the Mad Hatter's Tea Party. And the false precision of these people is just unbelievable. They make the worst economics professors look like gods. Moreover, there is depravity augmenting the folly. Read the book F.I.A.S.C.O., by law professor and former derivative trader Frank Partnoy, an insider account of the depravity of derivative trading at one of the biggest and best-regarded Wall Street firms. This book will turn your stomach.

According to comments allegedly made by Howard Cox, a US Department of Justice official in a closed-door meeting last week, after being frustrated with the disk encryption employed by Yastremskiy, Turkish law enforcement may have resorted to physical violence to force the password out of the Ukrainian suspect.

Mr Cox's revelation came in the context of a joke made during his speech. While the exact words were not recorded, multiple sources have verified that Cox quipped about leaving a stubborn suspect alone with Turkish police for a week as a way to get them to voluntarily reveal their password. The specifics of the interrogation techniques were not revealed, but all four people I spoke to stated that it was clear that physical coercion was the implied method.