Heywood relaxes on the dock at the lake with his favorite four-legged freind - the head of the household and Queen of Everything - Miss Lily. This is a really nice picture. The blurred background causes the primary subjects of the photo to stand out. In photography this is known as “bokeh,” a Japanese term that translates as “blur” or “haze.” There are camera settings that can help create bokeh, but in the case of this photo the primary reason is that the background is far in the distance. The more distance between the subject of a photo and the background the more blurred the background will be.
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