Below are links of an eclectic variety.

Woolly Mammoth to Be Cloned – Discovery News
Within five years, a woolly mammoth will likely be cloned, according to scientists who have just recovered well-preserved bone marrow in a mammoth thigh bone. Japan's Kyodo News first reported the find.

A Government Censors a Blog – techdirt
Be thankful for your liberties and freedoms, as some governments secretly censor information (in this case, a blog) without apparent due process.

Expose an Alleged Financial Crook and be Fined Millions – Seattle Weekly
Apparently bloggers need to be careful writing about crooks and ponzi schemes.  The unintended consequences of the Court's actions will likely be more anonymous, offshore blogging.

Aunt Midge Not Dying in Hospice Reveals $14B Market – Bloomberg
When private equity firms salivate about for-profit hospice investments, what is the probability that Medicare (i.e., taxpayers) is being pillaged and plundered?

Stephen Hawking on Time Travel - Letters of Note
This one is short and comical.

Please reference “Iran's Kish Oil Bourse Begins Oil Transactions in Euro and Dirham” dated 19 August 2011 from Hamsayeh.net.

Having an oil exchange that trades in multiple currencies, including a basket of global currencies, provides an alternative in the marketplace for those who don’t want to rely on any specific fiat currency (a currency not supported and backed by some tangible commodity).

The allegedly intentional misdirection of language in Silver Lake/Skype’s employees’ stock options agreement demonstrates the lengths that some firms and managers go to apparently cheat other people, clients and employees. 

For further reading about the behavior of aforementioned companies and managers, reference some of the links below.

Nevertheless, there are a couple of lessons that may help to mitigate perpetuation of unethical behavior by certain parties and individuals:

Lesson 1: The Devil is in the Details (ideally have an attorney vet one’s important agreements, or read thoroughly and ask questions)

Lesson 2: Asynchronous communication: unethical behavior that becomes transparent to more ethical employees, potential employees, and limited partners (public pension fund managers, foundations, etc.) generally ultimately wields a high cost to the alleged perpetrators (e.g., Enron, Lehman, Allied Capital, et al.).

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"Brian O'Shaughnessy." Luxembourg | LinkedIn. O’Shaughnessy is an alumnus of NYU and Merrick College holding a degree in “political science.” Currently Head of Global Communications at Skype and formerly worked for Google, who self proclaims not to do evil.  One wonders about the opinions of his alma maters and former employers regarding the option agreement topic. Web. 07 July 2011. <http://lu.linkedin.com/in/brianoshaughnessy>.

Davidoff, Steven M. "A Clash Between Venture Capital and Private Equity - NYTimes.com." Mergers, Acquisitions, Venture Capital, Hedge Funds - DealBook. 06 July 2011. Web. 07 July 2011. <http://dealbook.nytimes.com/2011/07/05/in-silicon-valley-a-culture-clash-sullies-a-romance/>.

Salmon, Felix. "Downgrading Skype and Silver Lake to ‘Evil’ " Wired.com. 25 June 2011. Web. 07 July 2011. <http://www.wired.com/epicenter/2011/06/skype-silver-lake-evil/>. 

Salmon, Felix. "Skype’s Options Plan and Silicon Valley Norms | Felix Salmon." Analysis & Opinion | Reuters. 07 July 2011. Web. 07 July 2011. <http://blogs.reuters.com/felix-salmon/2011/07/07/skypes-options-plan-and-silicon-valley-norms/>.

According to Coller Capital, and highlighted by Jason Kelly at Bloomberg, investors’ newfound selectivity will help eliminate 20% of private equity firms. Just one of many reasons is alluded to by the June 13, 2011 bankruptcy filing by Perkins and Marie Callender's restaurant, a portfolio company of Castle Harlan, which will lose all of its $245 million investment.

This isn't new information or surprising to many deal-by-deal practitioners such as Coventry League, as we witness the level of talent (or lack thereof) on a continual basis (in public and private equity investing) and wrote about the upcoming debt overhang at over-levered portfolio companies (De-leveraged Buyouts; Nov. 2009).  Nevertheless, more transparency about these zombie-like private equity firms is positive for the industry since many of these below average firms and professionals tend to overbid and under-perform from a post-acquisition operating perspective. 

  Unfortunately, the investment and M&A industry is not like, say, professional sports.  In sports, athletes are continually evaluated mostly on an objective basis and are displaced by those who demonstrate better prospects and abilities.  Exceptions, to an extent, are made for legacy athletes (e.g., Brett Favre) – sometimes. In investing, especially at firms that don’t charge fees based on performance (think wealth management-type firms and mutual funds), many professionals exist not necessarily by their objective abilities and performance but rather mostly by subjective reasons that often include cosmetic aspects of one’s background, personal connections and whatnot. 

Additionally, the industry perpetuates a myth that it is practically impossible to consistently outperform market indices (read: collection of companies selected by preset screens) using similar risk (typically defined using price fluctuations with time horizons less than a year). 

Why apparently sophisticated investors, including high net-worth individuals and institutional investors continue to deploy capital irresponsibly is puzzling.  This is best addressed in a separate blog; however, we'll leave you with this: InkStop.  It was a retail chain outlet focused on selling ink cartridges for printers.  The business model was terrible (high fixed costs; low-priced products; market trend of low-cost, quick-delivery Internet options; etc.).   Yet, several "sophisticated" investors found this business model attractive enough to actually request an investment memorandum and subsequently invest in the company.  After the company's prompt fall to bankruptcy, some of these same investors amazingly cried foul.  Moral of the story: Stupid is as stupid does.  

Below is an extract of a cease and desist letter mailed to TPM Media LLC (dba TPMMuckracker) regarding its writing about the NYSE and using a photo depicting the exchange.  A full summary can be read on Reuter’s blog, Felix Salmon: A slice of lime in the soda or at Wired.com.
  
NYSE has common law and Federal trademark rights in and to NYSE’s name and images of the Trading Floor… Moreover, NYSE owns Federal Trademark rights in one depiction of the Trading Floor and common law rights in the Trading Floor viewed from virtually any angle (collectively, “Trademarks”). Accordingly, NYSE has the right to prevent unauthorized use of its Trademarks and reference to NYSE by others.
 
Apparently some ignoramus is using NYSE letterhead and signing Chief Counsel Kendra Goldenberg’s name to stupid letters.

             

We wrote about the deflation versus inflation debate last year, and provided a couple of perspectives regarding how to frame, or define, the terms: namely, changes in money supply versus changes in nominal prices.

Today, Stoneleigh at The Automatic Earth provides a better and more detailed explanation in her post titled "Inflation for the Innocent, Hyperinflation for the Clueless."

 “It is not reality that drives markets, but perception, which is emotionally-driven rather than rational. If we assume markets will behave rationally, we will be wrong-footed every time.”

She also addresses the recent surge in commodities prices and acknowledges speculation, which is also described in this Bloomberg video about cotton hoarding in China.

The Guardian presented a concise infographic titled "Arab youth: the tipping point" regarding key factors indicating potential youth uprisings.  Two criteria are (a) percent of population comprised of youths and (b) their respective unemployment rates.  The latter are stated values.  It is likely those rates are understated, as they are in the U.S.

Based on the data, some of the ingredients exist for further youth uprisings in Northern Africa and the Middle East.  One factor not included is population density, which seems to act as a catalyst, as witnessed in the densely populated Egypt (primarily Cairo region).

So, who is most likely to be next after the revolution in Egypt? 

Algeria.

When comic relief is needed, the likes of Goolsbee, Bernanke and Fama is fine. However, if seriousness about a task or topic is warranted, then a genetic algorithm-based bot might be more useful, thankyouverymuch.

The cover story of Wired Magazine’s January 2011 issue is about artificial intelligence (AI).  I know, this topic might conjure up HAL 9000 from the 1968 science fiction film 2001: A Space Odyssey.  I suppose that’s not unjustified to do so.

Nevertheless, the initial story relates to how Kiva Systems set up a warehouse for diapers.com.  To a typical person, the inventory layout might have appeared haphazardly arranged, perhaps even to rational and efficiency oriented professionals such as finance and economics professors.  Yet, the organization of the warehouse was not based on human logic, but rather machine logic.  And, what is becoming exceedingly apparent, machine logic is excelling in many situations.

Furthermore, the cover story continues by including brief sections about Internet companies, financial markets, music, medicine, logistics, and fraud detection – essentially, a little bit of something to appeal to just about anyone.
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Sources and further resources:

●  Asimov, Isaac. I, Robot. Hardcover ed. New York, NY: Gnome Press, 1950. Print. The book is a collection of nine science fiction short stories. Find an edition at Powell's Books.

●  Gregory, John. "Robot Law." Slaw. 24 June 2010. Web. 01 Jan. 2011. <http://www.slaw.ca/2010/06/24/robot-law/>. Note: the blog article is a partial survey of interesting questions that have been asked about robots and the law, including several offlinks.

●  Levy, Steven, Felix Salmon, and John Stokes. "The AI Revolution Is On | Magazine." Wired, Jan. 2011. Web. 27 Dec. 2010. <http://www.wired.com/magazine/2010/12/ff_ai_essay_airevolution/>.

●  Singer, PW. "PW Singer on Military Robots and the Future of War | Video on TED.com." TED: Ideas worth Spreading. Apr. 2009. Web. 01 Jan. 2011. <http://www.ted.com/talks/pw_singer_on_robots_of_war.html>. Author shows how the widespread use of robots in war is changing the realities of combat. He shows us scenarios straight out of science fiction -- that now may not be so fictitious.

●  Vaughanbell. "Seeing the Mind amidst the Numbers." Mind Hacks. 22 Sept. 2009. Web. 01 Jan. 2011. <http://mindhacks.com/2009/09/22/seeing-the-mind-amidst-the-numbers/>. Blog article is about the Netflix Challenge that awarded a prize for the best algorithm that selects video suggestions for users. It also highlights the particular technique, called singular value decomposition (SVD).

Since we shared an infographic about the non-alcoholic carbonated beverages industry this summer, it seems reasonable to share a graphic regarding the adult beverage of choice.  [Much obliged to CaféTerra.]    

For those near Cleveland we recommend the seasonal Christmas Ale from Great Lakes Brewing Company.  And, for those living in the Mid-Altantic, we can recommend the small-batch specials from Dogfish Head Craft Brewed Ales based in Milton, Delaware.

And, if the infographic doesn’t have enough information to help you reveal your inner nerd, then included below are links that address the psychological aspects of imbibing too much (it’s not necessarily the alcohol talking) and the history of alcoholic beverages:

●  McGovern, Patrick E. Uncorking the Past: the Quest for Wine, Beer, and Other Alcoholic Beverages. Berkeley: University of California, 2009. Print.  Find at Powell's Books.

●  Carey, Benedict. "When People Drink Themselves Silly, and Why." The New York Times. 8 Mar. 2008. Web. http://www.nytimes.com/2008/03/04/health/04mind.html.
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And, Bailout Wednesday is read “Quantitative Easing II,” also known as printing money. 

Basically the FED creates money out of nothing and then buys assets from institutions.  Some, if not most, of these purchases may consist of distressed assets (market value is meaningfully below book value).  Taxpayers are awfully generous to enable banks and other financial institutions to indirectly dump their bad assets on them.

To wit, taxpayers are so generous they even elect their representatives and politicians who are backed by financial institutions and other lobbyists.  Fortunately, there are unlimited campaign contributions to help determine the best politicians money can buy (see link below):

Who Owns Congress? A Campaign Cash Seating Chart 

Nevertheless, in developed nations, there is a saying that a people deserves its politicians; or, the politicians are a reflection of their people.