Edouard Chazal

How the Cayman Islands Became a FIFA Power

It might seem unlikely that FIFA, soccer’s world governing body, has spent $2.2 million since 2002 to build a new headquarters for the soccer association and to fund two planned fields, given that the land is swampy and a grass field struggled to exist in brackish conditions.

FIFA’s generosity might seem even more improbable, considering that the Cayman Islands, a Caribbean tax and tourist haven, is ranked 191st among the world’s 209 national soccer teams. The team has never played in a World Cup. And the entire population of the islands, about 58,000, would not come close to filling the world’s biggest soccer stadiums.

While $2.2 million seems peanut for the FIFA, there’s a twist to it :

Seven years later, though, the first field remains weeks away from completion. Plans for a dormitory and a gym have not materialized. A final grant, for $500,000 in March 2014, was for the installation of artificial turf, FIFA noted on its website, because “the current grass field cannot survive in the low-level saltwater environment.”

→ The New York Times

I Fooled Millions Into Thinking Chocolate Helps Weight Loss. Here’s How.

A great reminder that medias can easily be fooled and help propagate false informations with pointless headlines.

Other than those fibs, the study was 100 percent authentic. My colleagues and I recruited actual human subjects in Germany. We ran an actual clinical trial, with subjects randomly assigned to different diet regimes. And the statistically significant benefits of chocolate that we reported are based on the actual data. It was, in fact, a fairly typical study for the field of diet research. Which is to say: It was terrible science. The results are meaningless, and the health claims that the media blasted out to millions of people around the world are utterly unfounded.

Here’s how we did it.

→ io9

Mr. Bleu

Delighted to hear Bill Gross’ point of view regarding art collecting. He and his wife seem more impressed by stamps, which they’re renowned collectors.

I’ve never been much of an art aficionado myself, having settled for framing some All American Rockwells neatly clipped from old Saturday Evening Post covers. There was a time though when a well-publicized Rockwell came to auction and Sue and I expressed some interest. Ever since, we’ve been on the art house’s mailing lists and I must admit, it’s fun to browse through the Picassos, Rothkos, and whatever else currently frenzies modern collectors. I’m no expert though, and if I begin to pretend that I am, Sue puts me in my place because she’s the artist in the family. She likes to paint replicas of some of the famous pieces, using an overhead projector to copy the outlines and then just sort of fill in the spaces. “Why spend $20 million?” she’d say – “I can paint that one for $75”, and I must admit that one fabulous Picasso with signature “Sue”, heads the fireplace mantle in our bedroom

→ Janus Capital

More on the Myth of Outsourcing’s Efficiency

I once said to my boss : “You gotta put every people’s minds at work” which meant to get every people to think about their tasks and processes, to bring something fresh to the workplace. Those precious remarks often come out from the lower-level people (further developed in the article) which makes perfect sense when you’ve got to prove more than managers who tend to gradually lack awareness and creativity.

On the other side, they are less prompt to go against their own routine. This conflicting situation where managers lack creativity (but are to impose reprocesses to the lower-level) and the lower-level which is constrained to keep its mouth shut in order to avoid any shift in their routine creates a blatant inefficiency.

Offshoring and outsourcing do lower direct factor and lower-level worker costs. But they do so at the increase of greater coordination costs of much more highly-paid managers. And they also increase shipping and financings costs, and downside risk. Having people work at a distance, whether managerially or by virtue of being in an outside organization where the relationship is governed by contract, increases rigidity (harder to respond to changes in market demand) and the odds of screw-ups due to communication lapses. And outsourcing also reduces an organization’s skills. Those lower-level people have a lot of product know-how that you lose when you transfer activities to an outside operation. It’s nice to think that you can hollow out your organization and just do all the sexy design and marketing stuff and dump the grunt work on other players. But over time you are breeding future competitors.

→ Naked Capitalism

Profiting From the Losers

Instead of trying to identify profitable trading algos on in-sample data that validate out-of-sample and remain profitable forward, one could instead try to identify unprofitable algos in some data sample that turn profitable in a forward sample. This often works because markets have become more mean-reverting in recent years.

→ Price Action Lab