Quants, Models, and the Blame Game
Cathy O’Neil, a quant, looks at the key question raised by a recent paper by Donald Mackenzie on the Gaussian copula model: why do flawed models become widely accepted?
Read more...Cathy O’Neil, a quant, looks at the key question raised by a recent paper by Donald Mackenzie on the Gaussian copula model: why do flawed models become widely accepted?
Read more...A serious simmering dispute involves China versus the rest of the world on rare earths. As most readers know, rare earths are essential to the manufacture of many high tech, defense, and “green energy” products, such as smartphones, lasers, and hybrid batteries. Even though rare earths are not rare, their extraction is an environmentally nasty business, and China, which has less than 30% of world reserves, now accounts for over 90% of global production. That is a stranglehold that China has decided to exploit.
Read more...“Passion” became fashionable in business at around the time other forms of emotional overshoot were hot, like “delighting customers.” While there may have been earlier efforts by Tom Peters and other corporate quacks gurus to infuse staid, supposedly rational business behavior with more pizzaz, the passion fashion seemed to take hold in the dot-com era. And that in a perverse way makes perfect sense.
By Satyajit Das, derivatives expert and the author of Extreme Money: The Masters of the Universe and the Cult of Risk Traders, Guns & Money: Knowns and Unknowns in the Dazzling World of Derivatives – Revised Edition (2006 and 2010)
In the old Soviet Union, Pravda, the official news agency, set the standard for “truth” in reporting. Discriminating readers needed to be adroit in sifting the words to discern the facts that lay beneath. Readers of The Economist’s “Special Report on Financial Innovation” (published on 23 February 2012) would do well to equip themselves with similar skills in disambiguation.
Read more...I know it’s dangerous to judge an article by its synopsis, but Harvard Business Review articles, unlike their academic cousins, are designed to be easy-breezy, so there is much less risk in taking one of its previews at face value. Here is what the HBR says Yale economist Robert Shiller presents longer form in its January-February edition:
Read more...Once in a while, the system works.
Read more...I’m pretty gobsmacked by the link (hat tip reader Scott S) to a webpage at the Consumer Financial Protection Bureau which says it is written by Richard Cordray: “We want to make it easier for you to submit comments on streamlining regulations.”
There is more than a little bit of NewSpeak in this idea.
Read more...Former banking regulator and white color criminologist Bill Black gives an unvarnished view of the behavior of Apple and other technology companies in dealing with suppliers in China. He does not buy the idea that the US is powerless to do anything about work condition in China and provides some concrete suggestions.
Read more...Wired’s Joel Johnson has written a stunning bit of PR for Foxconn, now-controversial supplier to the consumer electronics industry, duly wrapped in credibility-enhancing guilt over Western materialism.
The article, “1 Million Workers. 90 Million iPhones. 17 Suicides. Who’s to Blame?” pretends to be about Foxconn’s factories. But Johnson admits he’s a tech toy writer who apparently has no knowledge of manufacturing. Yet he’s remarkably uninhibited in using his fantasies and abject ignorance as a basis for making sweeping generalizations about the Taiwanese powerhouse. For instance:
Read more...By Philip Pilkington, a writer and journalist based in Dublin, Ireland
Over the past few days Facebook has once again been getting an awful lot of attention. The Facebook company, of course, loves the attention. After all, Facebook’s business model is almost entirely built upon the amount of attention they can garner for themselves.
Read more...Yves here. As much as the overall thrust of this guest post has merit, I’m always leery of forecasts that amount to “trees grow to the sky.”
Read more...Above my pay grade. The problem has been solved by splitting the site across two servers.
Here is the brief version:
Read more...By Tim Cooley, a marketer for Coxcabledeals.com. Please see his articles following him on Twitter at @TimLCooley
To raise public awareness of legislation that might threaten the openness of the internet, Wikipedia and several other sites recently made themselves unavailable for 24 hours. Of course, some people quickly found a way around the block, and everyone else just waited until the sites returned.
But what if the internet suffered a real blow? How would things change if Google and Bing went down for 24 hours, and there wasn’t a way around the block?
Read more...By Douglas K. Smith, author of On Value and Values: Thinking Differently About We In An Age Of Me
Earlier this month, Matthew Yglesias of Slate tweeted “EXCLUSIVE: The activities of individual business executives have no relationship to the level of economy-wide employment.”
It’s hard to choose what is most ridiculous here…
Read more...A New York Times story, “How U.S. Lost Out on iPhone Work,” uses an Obama dinner with Silicon Valley titans to frame its tale of why the US middle class should roll over and die. I am of course exaggerating for effect. But not by as much as you might think. The story by Charles Duhigg and Keith Bradsher does a very good job of explaining why Asia, and China in particular, has come to dominate consumer electronics manufacture, using the iPhone as focus.
The problem with using the microcosm to illustrate the macrocosm is you need to choose the right microcosm.
Read more...