The formula that blew up Wall Street

From Wired.

In 2000 a brilliant quant named David X. Li devised a mathematical formula called a copula function that got widely used by Wall Street to model risk.

Li came up with an ingenious way to model default correlation without even looking at historical default data. Instead, he used market data about the [...]

Perkypants virus spreading. Doomsters aghast

Yesterday we brought the troubling news that a VC investor was no longer gloomy. Well, this dangerous contagion is spreading, a noted economist has now become optimistic.

Stayin’ alive

I had a milestone birthday recently and had a batch of routine medical checkups. The MDs and nurses all marveled at the results and said there’s absolutely nothing wrong with me, which is always nice to hear.

Most were a bit startled to learn I work out or run at least four times a [...]

Killing for biofuel

Paramilitaries in Columbia are forcing peasants off their lands, sometimes murdering them, so they can then grow palm oil for export

Charities working with local peasants claim that paramilitary forces in league with biofuel conglomerates – some of them financed by US government subsidies – are forcing families off their land with death threats [...]

First came the browser, now it’s the realtime moment

Internet didn’t take off until the browser. The infrastructure was in place for some time already, but when the browser appeared, the TV generation sat up and took notice.

Now we’re at the threshold of the realtime moment, and history seems to be repeating itself. For some of us, the advent of a reasonably realtime [...]

Stanford’s newspaper in Antigua

Newspaper veteran HG Helps tells of his days working for Stanford’s newspaper in Antigua.

First off, no one in Antigua liked Stanford, something Helps originally thought odd.

“Stanford go on like a he own Antigua. He want everything and the Antiguan people no fi get nutten,” [said] one of my key friends.

Stanford bought [...]

Perkypants Alert. VC getting giddy, not gloomy

Venture Capital investor Paul Kedrosky at Infectious Greed is becoming dangerously perky, apparently refusing to believe the sky is falling in.

A confession: I’ve been offline most of the weekend and am only now catching up on the usual Sunday night chatter about how it’s the end of the world as we know it. [...]

Study: Oil demand will peak before supply runs out

Hughes is not alone in predicting that fears over peaking oil supplies are largely unfounded, on the grounds that economies will find replacement sources of energy at a faster rate than the oil industry expects.

Let’s hope so. Because that will mean we’ve switched to a renewable energy, non-petroleum-based economy.

BP and Verenium form cellulosic [...]

US may take big stake in Citi

Citigroup had its original birth with Sanford Weil buying degenerate, bottom-feeding subprime companies in the South that preyed on the poor and illiterate. Far as I can see, they’re still the same old girl they used to be. Now their management is begging Uncle Sam for more help while trying to maintain their power? [...]

SRI methods double rice yield

A farmer in Lombok, Indonesia, holds two rice plants of same variety. The plant on the left was grown with SRI methods and the one on the right with conventional methods.

SRI not only greatly increases yield, it uses less water and emits vastly less CO2 than rice grown in the traditional way [...]