Daily Digest

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Daily Digest 9/25 - How Algorithms Help Us Spend, What Business Is Wall Street In?

Tuesday, September 25, 2012, 11:53 AM

Economy

Marketplace in Your Brain: Neuroscientists have found brain cells that compute value. Why are economists ignoring them? (safewrite)

"I would say that neuroeconomics is about 90 percent neuroscience and 10 percent economists," says Colin F. Camerer, a professor of behavioral finance and economics at the California Institute of Technology and one of the prime movers in the new field. "We've taken a lot of mathematical models from economics to help describe what we see happening in the brain. But economists have been a lot slower to use any of our ideas."

How algorithms will help us spend, spend, spend (westcoastjan)

It realises the chances of you buying may be pretty low. That "voice" on your shoulder is pretty quiet as realism sets in.

Ordinarily, unless you wanted to go hungry that month, you'd leave the store.

Theodore Butler: Transparency (Taki T.)

In the same true spirit of transparency and of honesty being the best policy, three weeks ago I wrote to each member of the board of directors of JPMorgan. Since my main intent is to see the silver manipulation ended and not to hurt JPMorgan, I wanted to give them time to respond before publishing the letter. I didn’t want to sandbag or sucker-punch the bank by rushing to make public something I undertook on a good faith basis. If someone at JPMorgan had contacted me indicating the matter was being genuinely reviewed, I would have held off. However, the lack of response suggests to me that it may be business as usual as far as no one in charge moving against a blatant crime in progress. I’m not prepared to patiently wait indefinitely until someone decided to respond.

A Layman's Guide To QE And ZeroP (Jaime)

QE and ZeroP forces people out of savings accounts and CD's, and into riskier assets, thus driving up asset prices, making bank balance sheets look better, and enriching those with assets. This is particularly problematic for people who are retired or are close to retirement and for people who are risk-averse.

Get Your Fake Tungsten-Filled Gold Coins Here (Thomas C.)

Because the existence of counterfeit tungsten fake gold coin could have such a huge impact on the financial markets, there is a huge potential for deception and misinformation to be passed around. Be very careful about automatically believing any story you may hear. For your own protection, tungsten fake gold coin would be better to take physical possession of the smaller sizes of tungsten fake gold coins and now, and know that what you own genuine solid tungsten fake gold coin.

The Fed Is Systematically Destroying Social Security And The Retirement Plans Of Millions (westcoastjan)

Last week the mainstream media hailed QE3 as the "quick fix" that the U.S. economy desperately needs, but the truth is that the policies that the Federal Reserve is pursuing are going to be absolutely devastating for our senior citizens. By keeping interest rates at exceptionally low levels, the Federal Reserve is absolutely crushing savers and is systematically destroying Social Security.

Sao Paulo: A city with 180km traffic jams (westcoastjan)

Traffic jams cause problems all over the world, and not just for drivers, but in Sao Paulo they have become more than a nuisance.

Heavy traffic is an integral part of life and culture in this vast city of more than 11m people.

What Business Is Wall Street In? (westcoastjan)

The important issue is recognizing that Wall Street is no longer serving the purpose what it was designed to . Wall Street was designed to be a market to which companies provide securities (stocks/bonds), from which they received capital that would help them start/grow/sell businesses. Investors made their money by recognizing value where others did not, or by simply committing to a company and growing with it as a shareholder, receiving dividends or appreciation in their holdings. What percentage of the market is driven by investors these days ?

More overseas suitors eye oil sands (westcoastjan)

Conoco is one of the largest property owners in Alberta’s oil sands and its planned retreat highlights the growing challenges publicly traded companies face in extracting crude from tarry bitumen deposits with multibillion dollar mining, drilling and refining projects that are plagued with production setbacks and cost overruns.

Toyota drops plan for widespread sales of electric car (westcoastjan)

The current capabilities of electric vehicles do not meet society's needs, whether it may be the distance the cars can run, or the costs, or how it takes a long time to charge," said, Uchiyamada, who spearheaded Toyota's development of the Prius hybrid in the 1990s.

London Sees Oil Prices on the Rise (Arthur Robey)

The overwhelming consensus in Europe is that oil will rise, absent exogenous economic or financial problems. In other words, the price can go down, but such a move would be a result of another bout with credit crises, intra bank problems, or currency weakening. In such situations, the lowering of oil prices has nothing to do with oil, or its supply/demand balance, or its trade. Rather, economic constriction results in concerns over short and medium-term demand and those translate into a lower price.

Left on its own, the consensus over here is simple. Oil goes up.

How high oil prices will permanently cap economic growth (Tall)

For most of the last century, cheap oil powered global economic growth. But in the last decade, the price of oil has quadrupled, and that shift will permanently shackle the growth potential of the world’s economies.

The countries guzzling the most oil are taking the biggest hits to potential economic growth. That’s sobering news for the U.S., which consumes almost a fifth of the oil used in the world every day. Not long ago, when oil was $20 a barrel, the U.S. was the locomotive of global economic growth; the federal government was running budget surpluses; the jobless rate at the beginning of the last decade was at a 40-year low. Now, growth is stalled, the deficit is more than $1 trillion and almost 13 million Americans are unemployed. href="h">

Just 100 cod left in North Sea (Tina S.)

Callum Roberts, professor of marine biology at York University, told the Sunday Times that intense industrial fishing meant that few fish survived beyond the age of four, when they reach sexual maturity. “This means that there are fewer eggs and larvae to perpetuate future generations,” he said.

BPA harms human reproduction by damaging chromosomes, disrupting egg development (Arthur Robey)

The research also adds to the number of organs affected by BPA, or bisphenol A, which is found in plastic bottles, the linings of aluminum cans and heat-activated cash register receipts. This May, Hunt was part of another paper in PNAS reporting that the additive altered mammary development in the primate, increasing the risk of cancer.

Article suggestions for the Daily Digest can be sent to dd@peakprosperity.com. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."

4 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
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saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 2846
Spain police fire rubber bullets at Madrid protest (Video)

Spain police fire rubber bullets at Madrid protest

dkyates's picture
dkyates
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Joined: Mar 28 2012
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devvie's picture
devvie
Status: Member (Offline)
Joined: Jul 12 2012
Posts: 8
I do hope that Wall Street

I do hope that Wall Street will start orientate its vision on small business models as well, they may be a real breakthrough for our economy, why not go one step further? I just hope they realized it's time for this move.

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