My afternoon reading:

• Post-Financial Crisis – How do the Major Economic Players Stack Up? (Northern Funds)
• Three reasons beating the market is so difficult (Dallas News)
• The Economic Case for Same-Sex Marriage  (Bloomberg)
• How Moore’s Law Affects Wall St. Trading (DealBook)
• Media Analysis: Murdoch has been humiliated but much worse is yet to come (London Evening Standard) see also Scandal and Scrutiny Hem In Murdoch’s Empire (NYT)
• 13 Disturbing Facts About McDonald’s (The Fiscal Times)
• Jon Favreau Talks ‘Iron Man 3,’ Praises Joss Whedon for Avengers (Hollywood Reporter)
• Homeland Security Concedes Airport Body Scanner ‘Vulnerabilities’ (Wired) see also Congress: The TSA Is Wasting Hundreds Of Millions In Taxpayer Dollars (Tech Dirt)
• All Presentation Software is Broken (Ilya Grigorik)
• Is the filibuster unconstitutional? (Washington Post)

What are you reading?

>
Analytical Trend Troubles Scientists

Source: WSJ

Category: Financial Press

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

17 Responses to “10 Tuesday PM Reads”

  1. scecman says:

    My favorite line from the WSJ story on observational studies: “Which conclusion was correct? It is hard to tell, and the answer may be inconclusive.”
    Basically, this story clarifies what anyone who follow politics already knows – alot of data can be manipulated to generate any desired result.

  2. Moe says:

    Scecman:
    I forget who said it but; “You can torture data to confess to anything you want”

    Regarding J.P. Morgan et. al. : Perhaps one solution to the financial shannanigans is to have two types of dollars. One for “us” and one for the banks to “play” with. We are accountable for our money and the banks are accountable for theirs. (I kid, of course)

  3. AHodge says:

    the filibuster and all other senate and house rules
    are a cancer fastened on our representation
    by the two parties partly to perpetuate themselves
    against all wishes of the founders
    who feared and loathed parties and partizanship
    and did their best to construct the constitution and government to exclude them

  4. jaymaster says:

    The observational study mess is one of the greatest failures of modern science. This is a pet peeve of mine.

    A pretty good description of the issues here (but a long read):

    http://www.nytimes.com/2007/09/16/magazine/16epidemiology-t.html?_r=2&pagewanted=all

    A little shorter, but tied to a more controversial topic. Just ignore the topic if that bugs you. The facts are all the same:

    http://www.proteinpower.com/drmike/statistics/observational-studies-2/

    Or if video is more your thing:

    http://www.fathead-movie.com/index.php/2011/05/12/speech-science-for-smart-people/

  5. AHodge says:

    the founders had good reason,
    as the spectacle of a grat nation particularly embarrrassing itself every four years
    will demonstrate to every thinking person

  6. rd says:

    It appears that TSA has fallen for the myth that shopping at warehouses like Sam’s and BJs save you money because of discounts: http://www.aarp.org/money/budgeting-saving/info-12-2010/myth_buster_warehouse_clubs.html

    This appears to mean that financial management at the TSA is at the same level as a typical household.

  7. [...] Ritholtz, an article from Amy Chozick, NYT A former News Corporation subsidiary, a Moscow-based billboard [...]

  8. ilsm says:

    TSA like the pentagon, only newer.

    Spreading fear, making up solutions to the counter fictions and fear, revolving door to and from “suppliers, for profit phoney public good………

    Like the pentagon they will never pass a public audit, and it will be unpatriotic to question their mismanagement and plundering the tax payer.

    Like the pentagon a TSA industry complex soon to own congress.

  9. howardoark says:

    I’m not disagreeing (since I don’t know) but I’m curious how the founding fathers could have developed a distaste for political parties. Were there any in 1782? What odious things had they done?

  10. Mike in Nola says:

    The McDonald’s article left out one recently relevant fact: The new French President once worked at a McDonald’ in the US. And he still likes the burgers. Truly a man of the people.

  11. NoKidding says:

    “McDonald’s hires around 1 million workers in the US every year. This estimate from Fast Food Nation assumes a 700,000 domestic workforce with 150% turnover rate.”

    Wow… 150%

    “Post-Financial Crisis”

    When did that end? I think I missd it.

  12. orvil tootenbacher says:

    going from 0.23% to 0.33%? what am i missing?

    oh, it’s the WSJ. now, i remember: science is nothing but the fancy rhetoric of the educated elite. climate science – non-sense. evolution – phu-leez. we did not decent from apes. any fool can see that.

  13. SOP says:

    “going from 0.23% to 0.33%? ”

    Statistically significant or just noise ???

    Picking up from Orvil’s very correct observation (especially the “rhetoric” over reality)…

    When it comes to science:

    1) there will always be errors
    2) there will always be fraud
    3) errors and fraud – if they matter* – will be found out.
    4) the media, politicians, corporations will spin based on their best interests.

  14. rd says:

    On Moore’s Law:

    The basic information flow has not changed speed much. People still only eat three meals a day, corporate results are issued quarterly and annually, a number of other statistics are still issued monthly. The ability to run that information through a much faster computer doesn’t change the basic flow of informtation. With globalization, it still takes weeks to get major shipments as it has to cross the Pacific on a ship instead of coming from Buffalo or Detroit by rail.

    Moore’s Law only helps if you can come up with much better trading and investing algorithms that can use the extra power and if it allows the date to be generated with finer detail more accurately. In engineering, our modelling tools are much faster and can handle bigger sets of data than they used to. However, if the quality of the data has not improved it just means that we get the wrong answer faster and more precisely.

    Looking at the overall stock market patterns, it is amazing how well they plot over the patterns from the horse and buggy and Model-T eras. People are still just people and nations are still nations and no computer program is going to change that. It has just become a new weapon in the Wall Street suicide bombers’ arsenal in the same way that the telegraph followed by the telephone became weapons. Has Wall Street really moved very far beyond the wire fraud shown in “The Sting” where the horse racing results were known a couple of minutes earlier by the fraudsters than the marks?

  15. efrltd says:

    An observational study of observational studies? Talk about spurious conclusions. I’ll resist the temptation to list the flaws, just reference the 60 year old classic, “How to Lie with Statistics,” a work that is not only informative, but hilarious. All should read this very short book to inoculate themselves against such spurious information. (This is not a defense of the proliferation of worthless studies that need to be revealed.)