Video: Bribing vs. signalling – Marketplace Dept. of Behavioral Economics

Very funny video featuring Tim Harford, author of The Undercover Economist. Introduction (Via Youtube) The recession has made untamed jungles out of many office environments. Employees have had to adapt their behavior to the changing climate or suffer extinction… or are there other survival options available to cubicle denizens? Marketplace’s Dalasie Michaelis and “Undercover Economist” [...]

Errors in the Interpretation of the Black Swan philosophy

BlackSwanBK

Summary of the problem discussed in The Black Swan (and associated papers): The problem, basically stated (which I have had to repeat continuously) is about the degradation of knowledge when it comes to rare events (”tail events”), with serious consequences in some domains I call “Extremistan” (where these events play a huge role, manifested by [...]

Complexity In Financial Markets

There’s been a lot of talk on complexity & financial markets -this paper does the topic justice. Click Here To Learn About Complexity & Financial Markets Abstract (Via Markus K. Brunnermeier &  Martin Oehmke) Should we regulate complex securities, subject them to an FDA-style approval process, or limit who can invest in them? To answer [...]

Lessons from a Faraway land: The effect of spatial distance on creative cognition

I’ve blogged about this before, but I figure I should link to the appropriate study. Key concept:  When a creative task is portrayed as originating from far rather than a close location…we provide more creative responses. Click Here To Read About: Lessons from a Faraway land: The effect of spatial distance on creative cognition Abstract [...]

Crisis Compels Economists To Reach for New Paradigm! Meet Professor, Geanakoplos

“For decades policy makers thougth interest rates were the most important indicator of supply and demand in credit markets…. Now, Mr. Geanakoplos was saying that something else — lenders’ collateral or margin demands — could be even more important.” Now that sounds like an article worth reading. I believe George Soros also recommended looking at [...]

Warning: Your Brain Is Killing America’s Capitalism

Very interesting review of “This time is Different: Eight Centuries Of Financial Folly” I’m currently reading this book and I can’t praise it enough. Click Here To Read: Warning: Your Brain Is Killing America’s Capitalism Subheading: (Via Marketwatch) Recovery? New bull market? Yes, yes, get your money out of the mattress, out of CDs and [...]

A historical testimony to the US congress! Or is it?!

Taleb's testimony to the congress

Can you recall a moment when you could honestly say ‘I told you so’, but when no one listens? Well this just might be one of those for me. This Thursday September the 10th marks perhaps a historic development for both Washington and the financial markets. The US Congress’ Committee on Science and Technology held a [...]