Social Conformity and Truth

Wanting to be part of a group can lead us to hold our tongues, of course. But according to Jonah Lehrer, it goes beyond that; it can actually change our memories.

Goldman's Fund to Profit from the Protests

A gem from satirist Andy Borowitz.

OK, Maybe Not

BRUSSELS—Doubts grew about the effectiveness of a key proposal for stemming Europe's deepening debt crisis as it emerged that officials have ruled out a plan for the euro-zone's bailout fund to directly guarantee bond issues.
 
From The Wall Street Journal, Oct. 20, 2011.

Structure of Proposed European Rescue Fund

More stuctured finance is likely on the way, according to today's big story in The Guardian. Monoline insurance didn't go so well here in the States, during our bubble. For Europe's sake, I hope it works out a little better now. Of course, the article is discussing a proposal, not an agreement, so...stay tuned.

Well Said, Mr. Soros

From a blog post today by George Soros at the FT site, regarding Europe:

"The banking and sovereign debt problems are mutually self reinforcing. The decline in government bond prices has exposed the banks’ undercapitalisation and the prospect that governments will have to finance recapitalisation has driven up risk premiums on government bonds."

Clang, Clang, Clang, Boom!

Wolfgang Munchau: "This is the equivalent of putting explosives into a can, before kicking it down the road." (Link here; registration required.) He writes in opposition to the idea of leveraging the 440 billion euro fund that is being set up to stanch the eurozone's sovereign debt and bank capital crisis.

Robert Shiller on Stocks

Interview with Robert Shiller on stock market valuation. HT: Greg Mankiw's Blog.

Deception in Nature

Octopuses, squid, and cuttlefish use optical deception to hide underwater. One of the coolest videos I have seen in a long time. From the public radio show, Science Friday. Link here.