Daily Archives: November 29, 2011

Galactic Views (14)


                                                                                                                                        
SPACE WATCH

Young Stellar Grouping in Cygnus X
NASA – Cygnus X hosts many young stellar groupings. The combined outflows and ultraviolet radiation from the region’s numerous massive stars have heated and pushed gas away from the clusters, producing cavities of hot, lower-density gas.

In this 8-micron infrared image, ridges of denser gas mark the boundaries of the cavities. Bright spots within these ridges show where stars are forming today. Credit: NASA/IPAC/MSX

The Dumbest Idea In The World: Maximizing Shareholder Value


BOOK REVIEW

Fixing the Game: Bubbles, Crashes, and What Capitalism Can Learn from the NFL, Author: Roger Martin.

The Practice of Management, Author: Peter Drucker.

By Steve Denning – The “real market,” Martin explains, is the world in which factories are built, products are designed and produced, real products and services are bought and sold, revenues are earned, expenses are paid, and real dollars of profit show up on the bottom line. That is the world that executives control—at least to some extent.

The expectations market is the world in which shares in companies are traded between investors—in other words, the stock market. In this market, investors assess the real market activities of a company today and, on the basis of that assessment, form expectations as to how the company is likely to perform in the future. The consensus view of all investors and potential investors as to expectations of future performance shapes the stock price of the company.

Martin says that the trouble began in 1976 when finance professor Michael Jensen and Dean William Meckling of the Simon School of Business at the University of Rochester published a seemingly innocuous paper in the Journal of Financial Economics entitled “Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure.” more> http://is.gd/viF8OJ

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In euro zone crisis, companies plan for the unthinkable


By Ben Hirschler and Scott Malone – “It’s hard to make detailed plans but we need to think through how our pricing strategy would fare if there were suddenly a dismantling of the euro,” Brandgaard told Reuters. “How do we avoid falling into a trap? This is the first time I’ve asked such a question. It’s a topic that is increasingly on the radar.”

Banks, brokers and exchanges are in the front line.

ICAP, the world’s top broker for foreign exchange and government bonds, said on Monday it has tested its trading system to handle the collapse of the euro zone and re-emergence of national currencies. more> http://is.gd/wnceRH

The problems with emissions trading


By Hannah Hoag – What are the problems with the credit methods?

Lax verification for carbon-offset projects has been a problem for several schemes. For the credit-creating projects to be effective at reducing overall greenhouse-gas emissions, the scheme operators are supposed to approve only projects that would otherwise not have gone ahead. The auditor-general criticized the Alberta Department of Environment and Water for allowing carbon credits for emissions-reducing activities that have become common practice. more> http://is.gd/Iq2iuE

Who is More Valuable, Inventors or Innovators?


illustrationBy Dennis Stauffer – Despite all the legends, Thomas Edison was not the first to invent the light bulb or sound recording or motion pictures. Henry Ford was not the first to invent the automobile. Americans are so fascinated with the notion of the genius inventor, we tend to create them where they don’t exist.

Anyone who’s spent much time involved in real world innovation knows that coming up with an idea—even a prototype—while important and commendable, is often the easy part of the process. No better sources than Ford and Edison emphasized the crucial role of determination and hard work in bringing those inventions successfully into our lives. more> http://is.gd/oe1dPz