The investment bank Goldman Sachs is being sued by the SEC for allegedly selling an investment designed to lose money. The investment was built on a pool of mortgages that were likely to go into default. Initially, Erik Gerding at The Conglomerate (a legal blog) thought that the SEC would have difficulty winning the case, since Goldman had disclosed the contents of the pool. Then he had second thoughts, because of this paper, “Computational Complexity and Information Asymmetry in Financial Products”, by Arora, Barak, Brunnermeier, and Ge. The paper shows that even if you know the contents of the pool, detecting whether bad mortgages are hidden in the pool is an NP-complete problem, which is normally considered the hallmark of computational intractability.
Archive for the ‘Uncategorized’ Category
How Do We Know Goldman Sachs is Guilty? Computer science
Friday, April 30th, 2010How to Publish a Comment
Wednesday, April 28th, 2010In some disciplines, there is the notion of a Comment on a published article, which is what it sounds like: a short comment about the contents of the article (for example, that it’s wrong). Cat Dynamics links to an interesting account of physicist Rick Trebino’s (lengthy but ultimately successful) attempts to publish a Comment explaining why a published article is wrong.
I don’t think I’ve ever seen a Comment in a pure math journal. They’re common in statistics journals.
Strogatz at the NYT
Tuesday, April 13th, 2010The New York Times has an online math blog by Steven Strogatz. Given the venue, it is written for an elementary audience. Here is a recent post on the method of exhaustion and how it allows you to approximate π.
Insane Clown Posse versus You
Friday, April 9th, 2010The Insane Clown Posse has declared war on scientists. Check out these recent lyrics (warning, curse words ahead):
That Mysterious DNS
Thursday, April 8th, 2010When I said that I was about to eat a big bowl of non-blogging, I didn’t mean that I was going to turn off the website, but apparently that’s what the server thought I meant. I didn’t realize initially that the site was down because I was having unrelated DNS issues, and I thought that’s why I couldn’t access the site.
I discovered that the site was back up when I received my first notification that somebody had posted spam in the comment section.
Lent’s Up
Thursday, April 1st, 2010Well, Lent is ending, so I’m getting ready to open up a big bowl of non-blogging. Having just written one post for each of the last 40 days, I’m amazed by the people who keep it up every day for years.
Solving the Pell Equation
Wednesday, March 31st, 2010This article by Henrik Lenstra has an intriguing quote:
The key notion underlying the second algorithm is that of “infrastructure”, a word coined by Shanks (see [11]) to describe a certain multiplicative structure that he detected within the period of the continued fraction expansion of √d. It was subsequently shown (see [7]) that this period can be “embedded” in a circle group of “circumference” Rd, the embedding preserving the cyclical structure. In the modern terminology of Arakelov theory, one may describe that circle group as the kernel of the natural map Pic0Z[√d] → PicZ[√d] from the group of “metrized line bundles of degree 0” on the “arithmetic curve” corresponding to Z[√d] to the usual class group of invertible ideals. By means of Gauss’s reduced binary quadratic forms one can do explicit computations in Pic0Z[√d] and in its “circle” subgroup.
I’m a sucker for anything that related elementary topics (like Pell’s equation) to advanced topics that I don’t understand (like Arakelov theory).
The 24-Cell in 3-D
Tuesday, March 30th, 2010![]()
The 24-cell is a mysterious regular polytope in 4 dimensions, in that there’s no analogy to a Platonic solid. Since 2005, the campus at Penn State has featured a sculpture based on a 3-dimensional projection of this 4-dimensional object. The sculpture, known as the Octacube, was designed by Penn State mathematics professor Adrian Ocneanu. The sculpture was sponsored by Jill Grashof Anderson in honor of her husband, who was killed in the September 11th attacks.
Penn State has put out a shorter and longer article on the sculpture.
Counterexamples in Functional Analysis
Monday, March 29th, 2010Mohammad Sal Moslehian has put together a website of counterexamples in functional analysis. (On my browser the HTML versions come out looking weird, but the PDFs look fine.)
The Tragedy of Blogging
Sunday, March 28th, 2010Like most blogs, this blog gets a lot of spam, most of which gets caught by the spam filter, but not all. Some of it I have to go through manually. Sadly, I have come to learn that if a message says something like “great job”, it’s spam with probability 1. Probably the next generation of spambots will say “Completely wrong, you idiot!” and compare you to Hitler for greater verisimilitude.
Combined with the revelation that I accidentally turned down the Clay Prize, it’s been a discouraging day for this blogger.