EA Framework TOC links updated

http://eesfx.com/wiki/docs:framework

FOXNews.com - Beware of Link: E-Mail Virus Plays Havoc With Internet

FOXNews.com - Beware of Link: E-Mail Virus Plays Havoc With Internet

Dunning–Kruger effect

The Dunning–Kruger effect is a cognitive bias in which an unskilled person makes poor decisions and reaches erroneous conclusions, but their incompetence denies them the metacognitive ability to realize their mistakes.^[1] The unskilled therefore suffer from illusory superiority, rating their own ability as above average, much higher than it actually is, while the highly skilled underrate their abilities, suffering from illusory inferiority. This leads to the situation in which less competent people rate their own ability higher than more competent people. It also explains why actual competence may weaken self-confidence: because competent individuals falsely assume that others have an equivalent understanding. "Thus, the miscalibration of the incompetent stems from an error about the self, whereas the miscalibration of the highly competent stems from an error about others."^[2]

The Dunning–Kruger effect was put forward by Justin Kruger and David Dunning. Similar notions have been expressed–albeit less scientifically–for some time. Dunning and Kruger themselves quote Charles Darwin ("Ignorance more frequently begets confidence than does knowledge")^[3] and Bertrand Russell ("One of the painful things about our time is that those who feel certainty are stupid, and those with any imagination and understanding are filled with doubt and indecision."^[4][5]). The Dunning–Kruger effect is not, however, concerned narrowly with high-order cognitive skills (much less their application in the political realm during a particular era, which is what Russell was talking about.^[6]) Nor is it specifically limited to the observation that ignorance of a topic is conducive to overconfident assertions about it, which is what Darwin was saying.^[7] Indeed, Dunning et al. cite a study saying that 94% of college professors rank their work as "above average" (relative to their peers), to underscore that the highly intelligent and informed are hardly exempt.^[4] Rather, the effect is about paradoxical defects in perception of skill, in oneself and others, regardless of the particular skill and its intellectual demands, whether it is chess, playing golf^[8] or driving a car.^[4]

http://en.wikipedia.org/wiki/Dunning–Kruger_effect

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More than 400 US Banks Will Fail: Roubini

http://www.cnbc.com/id/38986777
Even if the US and European economies manage to avoid a double dip, it will still feel like a recession, while more than half of the 800-plus US banks on the "critical list" are likely to go bust, according to renowned economist Nouriel Roubini of Roubini Global Economics.

Kabul Bank on the verge of collapse - Afghanistan

http://www.washingtonpost.com/wp-dyn/content/article/2010/09/02/AR2010090202266_pf.html
Karzai's brother calls for U.S. to shore up Kabul Bank as withdrawals accelerate

DUBAI, UNITED ARAB EMIRATES - As depositors thronged branches of Afghanistan's biggest bank, Mahmoud Karzai, the brother of the Afghan president and a major shareholder in the beleaguered Kabul Bank, called Thursday for intervention by the United States to head off a financial meltdown.

"America should do something," he said in a telephone interview, suggesting that the Treasury Department guarantee the funds of Kabul Bank's clients, who number about 1 million and have more than $1 billion on deposit with the bank.

Kabul Bank handles salary payments for soldiers, police and teachers. It has scores of branches across Afghanistan and holds the accounts of key Afghan government agencies. The collapse of the bank would probably spread panic throughout the country's fledgling financial sector and wipe out nine years of effort by the United States to establish a sound Afghan banking system, seen as essential to the establishment of a functioning economy.

Action by the United States, said Mahmoud Karzai, would prevent a run on Kabul Bank and protect other banks too. He said Kabul Bank is "stable and has money" but cannot withstand a stampede by panicked depositors.

"If the Treasury Department will guarantee that everyone will get their money, maybe that will work," said Karzai, who holds 7 percent of the bank's shares, making him the third-biggest shareholder. Karzai, who spends most of his time in Dubai - where he lives in a waterfront villa paid for by Kabul Bank - rushed to the Afghan capital Wednesday to join efforts to salvage the bank.

Treasury officials have said they have confidence in Afghanistan's Central Bank, which ousted Kabul Bank's top officials this week and has sought to stabilize the bank's finances.

But those moves may have spurred a panic: Depositors yanked at least $90 million from Kabul Bank on Wednesday, according to people familiar with the situation, and the hemorrhaging of funds accelerated Thursday.

"Yesterday was not too bad, but today is worse," said a Kabul Bank insider. "It is a very bad situation."

Currency trading jumps 20% in 3 years

http://www.bbc.co.uk/news/business-11148626
A three-year report into currency dealing shows rapid growth in trading, with the majority of business happening in London.

Trade has jumped by 20% in the three years since the last survey was conducted by the Bank for International Settlements (BIS), which is sometimes called the "central bankers' bank".

But London outpaced the average, with turnover up by 25% over the period.

Some $4 trillion (£2.6tn) changes hands around the world every day.

Rumors have circulated in China that People’s Bank of China (PBC) Gov. Zhou Xiaochuan may have left the country.

Rumors have circulated in China that People's Bank of China (PBC) Gov. Zhou Xiaochuan may have left the country. The rumors appear to have started following reports on Aug. 28 which cited Ming Pao, a Hong Kong-based news agency, saying that because of an approximately $430 billion loss on U.S. Treasury bonds, the Chinese government may punish some individuals within PBC, including Zhou.

Although Ming Pao on Aug. 30 published a report on its website indicating that the prior report was fabricated by a mainland news site that had attributed the false information to Ming Pao, rumors of Zhou's defection have spread around China intensively, and Zhou's name has been blocked from Internet search engines in China.

STRATFOR has received no confirmation of the rumor, and reports by state-run Chinese media appeared to send strong indications that Zhou is in no trouble at the moment. However, the release of this rumor and its dispersion throughout the public is significant, particularly as the Communist Party of China (CPC) is preparing for a leadership transition in 2012.

Chinese state-run media and official government websites have run several high-profile reports about Zhou, which should be seen as a move to refute the rumors. The PBC website published two articles on its homepage reporting on Zhou's meeting with visiting

Japanese Financial Services Minister Shozaburo Jimi during the third China-Japan high-level economic dialogue as well as a meeting with an Italian delegation. Xinhua news agency reported that Zhou told the PBC Party Committee Enlargement Meeting on Aug. 30 it should "continue to implement justice, and strengthen legislative work in financial system." Prior to this news, Zhou appeared at the 2nd annual conference of the heads of the Chinese, Japanese and Korean central banks held on Aug. 3, and his most recent public appearance was Aug. 10 for China's Financial System Anti-corruption Construction Exhibition.

Zhou is known to have lofty political ambitions and is believed to be a close ally to former Chinese President Jiang Zemin, as well as a core figure for Jiang's "Shanghai Gang." There has been no shortage of rumors about Zhou's possible dismissal in the past five years, as he is believed to be associated with several high-level financial scandals. For example, Zhou was rumored to be under "shuanggui," a form of house arrest administered by the CPC, during the massive crackdown of Shanghai Party Secretary Chen Liangyu in 2006, which was perceived in the country as a crackdown of the Shanghai Gang and part of Hu's effort to consolidate power ahead of the 2007 power transition.

There was also a rumor that he might have been detained following the investigation and arrest of Wang Yi, the vice governor of the China Development Bank, along with several other officials in the financial circle. Currently, several financial scandals are still under investigation, and it is likely that Zhou, as PBC governor and one of the most powerful economic players in the country, could be associated with some cases. Therefore, whether or not the rumor is true at this time, the leaking of this news is very likely to be associated with a power struggle within the Communist Party's economic hierarchy.

By George Friedman