Betting on the bell curve

There’s been plenty of talk about the GFC and what caused everything to go so terribly wrong. But odds are, if words like derivative and hedge fund mean nothing to you, neither do most of the explanations out there. In that case, pick up The Black Swan by Nassim Nicholas Taleb; it’s a must-read for anyone who wants to dig deeper without getting entrenched in the messy details. Basically, as Mike Cranna writes, banks have been betting billions on mistaken assumptions, and being thrown off by the influence of low probability, high impact events. If there’s one thing you can count on, it’s to count on the unexpected—nobody escapes the clutches of Murphy’s Law.

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A high honour

Street-kid-turned-scientist Ray Avery was named New Zealander of the Year this week for his innovative low-cost medical devices, which are making a difference to some of the world’s neediest citizens.

From intraocular lenses which fight cataracts to high-protein food made from local by-products, there’s a high demand for his inventions in developing countries—and the returns are reinvested through his charity, Medicine Mondiale.According to Prime Minister John Key, what set Avery apart was his decision to “share his success with those less fortunate”. We interviewed him back in 2007, and you can read the full story here.

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A very handy device

Imagine this: the battery signal on your cell phone is flashing the death flash and you’re about to run out of juice. You take out the battery, twirl it around your finger a few times, and buy yourself a few more minutes. Now wouldn’t that be handy? 130 rotations for two minutes of talk time is a bit much, though—halve that and I’d be sold.

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Money: that's what I want

It spawned classic lines like “Greed is good” and “There’s no nobility in poverty”. Now, a sequel to Wall Street is in the works. Check out the trailer for Wall Street 2: Money Never Sleeps, starring Michael Douglas, Susan Sarandon, Josh Brolin, and the kid from Transformers. http://www.youtube.com/watch?v=oV5hEBqYfTE

How many is too many?

Hasselblad is set to release a 40-megapixel “entry-level” camera and it could be yours for the price of a car. $19,995 will get you the all-new H4D40 with an 80mm lens and a True Focus AF system. Still, a medium-format DSLR was never exactly going to come cheap.

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When art and maths collide

Whoever said art and mathematics don’t mix has officially been proved wrong. American photographer Nikki Graziano—who studies photography and maths—has combined the two by ‘graphing’ her photos, complete with equations. Hard to explain: see it for yourself here.

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Leaving on a poetic note

Hey, if I was going to quit my job, that’s how I’d want to do it. Short, sweet and to the point. Sun filed for withdrawal from the stockmarket last month; proof that no business is too big to fail.

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Only in Japan…

Cryptically named the White Goat, this little machine recycles shredded office paper and turns it into toilet paper. It all sounds very green, but the gadget itself costs a cool $100,000. Still, it’s the thought that counts, right?http://www.youtube.com/watch?v=i51zo3LA70U

Quote of the week

“Bankers are calculating the risk as, “What are the chances of someone being 20,000 feet tall?” when in fact the risk they are exposing their clients’ money to is more in the region of, “How often do the super-wealthy attend football matches”?”

— Mike Cranna breaks down the financial meltdown in everyday terms.