Baltimore — (TFN): How efficient are the markets? It is like asking how smart is the human race We all know the answer, but few of us are willing to suck in our pride and admit there are a few dim bulbs among us.

Judging by the sudden rise in fame of Levi Johnson or Balloon Boy’s antics, the human brain is far feebler than we give credit.

And so are the markets.

If you have taken a basic finance class anytime between 1965 and the present, you have likely studied Eugene Fama and his efficient market hypothesis.

Essentially, the University of Chicago professor created a cult-like following of investors and academicians that believe markets entirely reflect all known information and instantly react to new information.

For example:

When I told my ever-optimistic, ever-“hopeful” colleague, Laura Cadden, the news the majority of Obama’s infrastructure stimulus would finally be doled out sometime early next year

...

Today, BrainStorm Cell Therapeutics Inc. took the opportunity to announce that the company’s therapeutic treatment for neurodegenerative diseases displayed superior results to other current potential stem cell treatments in a recently conducted study.

The Israel Medical Association Journal published a scientific paper, authored by Ofer Sadan, Eldad Melamed and Daniel Offen from Tel Aviv University, showing the migratory capacity of Neurotrophic Factor Stem Cells (NTF-SC) in animal models of Parkinson’s and Huntington diseases. The study demonstrated that in a rat model for Parkinson’s disease, the efficacy of NTF-SC was superior in behavior, biochemical and histological indices to that of mesenchymal stem cells. The complete study and scientific paper are available on Brainstorm’s website at http://www.brainstorm-cell.com/_Uploads/47Sadan2009.pdf.

Professor Daniel Offen, Brainstorm’s chief scientific advisor, commented, “The results of this study show that the NTF-SC based treatment is efficacious due to NTF secretion and the stem cell’s migratory capabilities. Since our novel technology

...

This is a guest contribution by Damien Hoffman, editor of the very popular Wall St Cheat Sheet blog.

This may sound like common sense to investors and traders, but most people - including policy makers - do not readily accept the flawed nature of economic models.

Thank goodness we have professor David Colander testifying to Congress in order to enlighten an otherwise dim room. Colander’s work at Middlebury College focuses on the incentives and work-product of economists. His work has become increasingly more important as economists have heavily influenced policy making in recent years.

In addition to exposing a few absurd underlying economic presuppositions such as “individuals behave with rational self-interest,” Colander is helping shift incentives for professional economists away from publishing toward engaging in more useful studies.

...

This is a guest contribution by Damien Hoffman, editor of the very popular Wall St Cheat Sheet blog.

This may sound like common sense to investors and traders, but most people - including policy makers - do not readily accept the flawed nature of economic models.

Thank goodness we have professor David Colander testifying to Congress in order to enlighten an otherwise dim room. Colander’s work at Middlebury College focuses on the incentives and work-product of economists. His work has become increasingly more important as economists have heavily influenced policy making in recent years.

In addition to exposing a few absurd underlying economic presuppositions such as “individuals behave with rational self-interest,” Colander is helping shift incentives for professional economists away from publishing toward engaging in more useful studies.

...

Both have to be "handled with care".

Revisions

We're all tempted to make predictions on the basis of the last data point. And even more difficult to resist is the temptation to make definitive statements on the basis of data that are sure to be revised. For instance, we see this question from Casey Mulligan, "Where's the GDP Disaster?".

Last October, when we were told that spending and incomes were about to collapse, I predicted that "real GDP will not drop below $11 trillion (chained 2000 $)."

Professor Mulligan provides this graph.

Figure from Mulligan, "Where's the GDP Disaster?"

I think this is an excellent time to recapitulate the hazards of making definitive assessments on the basis of data that are sure to be revised [0] [1]. To illustrate this point, I go back to the last recession, which according to the NBER extended from

...

Dr Stock Pick HOT News & Alerts!

_______________________________________

FREE Daily Stock Alerts From DrStockPick.com

_______________________________________

Friday October 30, 2009

DrStockPick.com Article

**************************************************************

Too big to fail, is still heavy in the derivative market, and primed for a gigantic collapse.

Congress needs a chimney sweep to clean the soot from the smoke they’ve been blowing. Our do nothing congress; well we can’t really say do nothing, they did bail out the banks, and they have raised more money for themselves this session from Insurance, health care and bank lobbyists than in any other one year period, and the year isn’t even over. Now they are spreading the word, the gospel of Obama, it’s time to

...

There were some other very interesting presentations at the conference hosted by the Federal Reserve Bank of Boston last week. Fed Chair Ben Bernanke spoke on Financial Regulation and Supervision after the Crisis while Princeton Professor Alan Blinder's message was

...

Over the past month I have been deeply engaged in conversations surrounding the book Civic War and the Corruption of the Citizen, authored by the brilliant Peter Alexander Meyers, a political theorist and professor at the Sorbonne in Paris as well as a place known as Princeton University in the United States.I cannot overstate the debt of gratitude I owe to Meyers for this brilliant work, and later this week I plan to publish a review as well as post some video interviews and discussions from a meeting we had with him earlier this month.  If I may ask one, small favor of my regular readers:  PLEASE PICK UP A COPY OF THIS BOOK!  Not only will you ...

eDoorways Corporation announced this afternoon that it will be playing an integral role at the Ibero-American Science and Technology Education Center (ISTEC) XVIIth annual General Assembly, held the week of October 26 – 30, 2009, on the Campus of the University of New Mexico (UNM) in Albuquerque, NM – USA. Not only will eDoorways co-sponsor the event, but its officers will deliver keynote presentations on Tuesday, October 27, and Wednesday, October 28.

Gary Kimmons, Chairman & CEO of eDoorways Corporation, stated, “This is a very important event for ISTEC and for eDoorways and the beginning of a partnership between us. The theme for this year’s General Assembly is, ‘Using Technology to Enable Collaboration, and Collaboration to Advance Science and Technology.’ As it happens, that is exactly what our LEARN and SOLVE Doorways can help bring about. We foresee a genuine symbiosis here

...

ROY, MI — (Marketwire) — 10/22/09 — Viper Networks, Inc. (PINKSHEETS: VPER), a telecommunication network operations and technical management company, announced today that it has engaged a professional legal and accounting team to prepare and file a Form 10 Registration Statement with the U.S. Securities and Exchange Commission (SEC), to commence the process of becoming a fully-reporting company once again, in addition to potentially seeking a higher market listing for the Company.

The full service accounting firm Chang G. Park, CPA, of Southern California since 1988, will provide all financial guidance and internal auditing prior to submitting their final certified audits on behalf of Viper Networks, Inc.

Additionally, Securities Law attorney William M. Aul, Attorney At Law (San Diego, CA), and Professor at California Western School of Law, will continue to act as special counsel to the Company and participate in the preparations and filing of the SEC Form 10

...