ERPZ Stop Mugging. Start Learning.

8May/120

Clutter Free

By Kevin

Clutter Free

Clearing the Mess

It was time ERPZ did a bit of reworking of the site. Hopefully by the end of August we'll have a new theme, and with better navigation for our expanding pool of materials.

There is thoughts of compiling an eBook on Project Work. There's some rethinking about the format of writings; current affairs musings by Kevin may simply stop and be channeled back to his personal blog and ERPZ will focus on education and advice. We might be running a poll on it so check out our facebook page for more updates on that. Make sure you 'Like' us.

We really hope to start a community and we need a team to work on this. Please write to us on the contact form if you believe you can contribute in any ways!

Filed under: erpz News No Comments
8May/120

Chasing Goldman

By Kevin

Chasing Goldman

Emulate, don't Chase

When I first borrowed 'Chasing Goldman Sachs' by Suzanne McGee, I didn't expect to be finishing the rather thick tome. It turned out to be a pretty fine book with its 'utility' analogy of the function of the financial industry and tracing the evolution of the industry from a boring, administrative sort of place to one where brains were pit against brains with unintended (disastrous) consequences.

It was essentially a discussion on the problems in the system itself - culture, regulatory capture (to a certain degree) and incentive problems. There was the typical journalist sort of inconclusive discussion about where the industry to move towards in the coming future. I often write stuff like that to sound intelligent because saying nothing and facilitating viewpoints is the best way out when you find it too risky to take a stand on the issue.

And then I was watching Margin Call, which depicted the sort of culture as well as paradigm that people in the industry have about themselves and the rest of the world. Indeed, it was pointed out by Suzanne that the Wall Street approach towards a problem is vastly different from that of someone on Main Street:

On Wall Street, when you spot a problem, you figure out how to profit from it; not how to solve it.

So let's say you know Enron cooked their books; you don't blow the whistle! At least not until you've accumulated vast amounts of short position on their stock. If you know a war is going to break out in the Middle East before everyone else, you don't call for peace or try and prevent it - you buy oil futures! And so the examples go. That's the way they work, don't expect them to try and prevent a crisis; tell them about it and they'll shrug and go behind their cubicles to their spreadsheets and start computing potential cashflows in different states of the world.

Towards the end of the book Suzanne talks about the importance of learning Goldman Sachs' strategy rather than trying to emulate their returns. I guess it applies to many aspects of life. You realise that when your friends do brilliantly in exams, and you hope to beat him at his game, you don't just go all out to ramp up your studying hours and consult tutors for every other thing. You find out what he does, understand his motivations, find your own motivation and work out a niche for yourself. Don't scramble for the solution only when trouble comes along or try and catch up only when you're falling back - have a strategy, know what you want and then know what to do about it. Only then, you've a chance at getting close to 'chasing Goldman Sachs'.

1May/120

Learning & Association

By Kevin

In the previous entry, I promised that I'll come back to this topic; I mentioned something about a counter-intuitive phenomenon when it comes to learning:

When everyone is reading their textbooks and preparing for exams, it would seem somewhat unwise to be reading some other popular Economics books or even the Bible. Yet as a student captured in this whole paper chase, one needs also to realise that there is little value in re-reading what one has been reading for practically the whole year. Combining the content learnt with newer, obliquely relevant knowledge improves your associative memory and can remarkable enhance the ability of questions to trigger knowledge you've already acquired previously over the term.

Drilling yourself can create an 'instinctive' reaction but damage proper association in our memory. Your understanding of things becomes locked in a fixed sequence, a sort of linear series that does little justice to the true underlying logic of the subject matter. Knowledge and the actual connections within information is often networked, in the style of a web; much like a wikipedia entry with lots of linked stuff here and there. You cannot study things in a set sequence unless the specific topic involves simply a sequence of logical steps that is almost necessarily unidirectional. Even when there're steps in sequence, as long as you can move in different directions and jump between steps, a web-like structure of studying would better aid learning.

Moonwalking with Einstein

Crap helps sometimes

Mindmaps and tables are incredibly useful methods of organizing web-structured information. Of course, when I suggest tables, I was actually thinking of multi-dimensional ones broken up into sets of 2-dimensional tables. It is the same as the sort of summary you find in the resource section of our site. And the unique feature of web-structured information is that having more information and holding more knowledge actually helps you to retain new things/ideas even better.

Anyone who had the chance to read Joshua Foer's 'Moonwalking with Einstein' would realise that their traditional notions about mental capacities are completely mistaken. Your mind is not a closet that runs out of space after storing too much stuff; rather your mind doesn't lose the ability to store stuff - it simply loses the ability to retrieve things when you fail to catalogue it properly when trying to memorise it. You don't have to try and master the techniques he mentioned and be a memory champion in order to ace your exams but it does help to pick up a tip or two about the implications of these memory techniques that the mental athletes use.

Storage & Cataloguing
I'm using rather machine-like terms but the mind is something wonderfully organic and obviously defies machine logic. It appears to act like a machine while being way more flexible and powerful without requiring too much resources (ie. efficient). When studying, nothing is more important than focus and concentration. There's some things that can be picked up quickly within a short span of time, then try to spend short, focused units of time on them and then take breaks. Others requires long amounts of less intense concentration but lots of practice - and you should know what to do by now. Still, take breaks.

Joshua Foer

Pin-point Focus

During these breaks, read a book, look at things around you and relate the things you learn to your life. Pay your bills and think about your finances; go online to shop for stuff and think about the signals behind those prices; hunt for bargains near your home and consider the consumer surplus vendors are trying to extract from you when using two-part pricing. Don't compartmentalize what you learn from your life. It's kind of nerdy/geeky but whatever, human progress by putting knowledge into application and not knowing things, storing them into paper manuscripts and placing them in a library. Economic progress at the cutting edge are made in industries, businesses and market exchanges, not research laboratories, academics offices or think-tanks.

Those thoughts and stuff you learn from the books you read helps to anchor the ideas you've acquired; they do not distract you from the main point unless you wander too far yourself. More importantly, they are more useful anchors than the pointless information that Joshua Foer has to remember in order to have a set index of the cards. These additional information you acquire forms a natural index for you to organize the information in your mind.

When your eyes are tired, try listening audio versions of the things you're trying to learn; when your ears are tired, try writing notes from the textbooks or organize the information in a different way (when you do that, you're interpreting them in your own terms). At the same time, you're engaging more sense to help you remember the information. Your mind not only remembers the abstract ideas but associates the muscle fatigue, the movements of your eyeballs across the pages, or the sounds you hear, whether it's the voice of the lecturers, the tones and pitches, the emphasis and such. All these meta-information helps to enhance the anchors in learning and provides a denser web for more ideas to cling on to.

Recall & Retrieval

Now during the exam, you realise that when the question comes, it triggers you to recall the information that has been acquired, sometimes with a little adjustment, that your mind makes quite smoothly. Other times, you need to locate what it is that you need to retrieve before acting on it. The actual pathway of recall is usually more bizarre than we'd like to imagine it is. The thought process could go like:

What is this (concept)? I remember I read it (somewhere in this textbook). I remember I was in my room when reading it. Ah yes, I was sitting on my bed then, and after that particular reading I went to get tea for myself. Oh yea, and I was thinking about how the distribution of the quality of the tea would come from the 'ensemble distribution' when they are sampled somewhat randomly even though the quality of the tea might be simply directly correlated with the packet that comes before it. Ah, so the ensemble distribution is the potential limiting distribution for the variable following the random walk process at any time 't'.

Obviously 'tea' and time 't' does have some sort of audial association but I shall not go into that. Even if you don't know what the concept mentioned above is about; you get my drift about how seemingly unrelated stuff can help you in the process of your knowledge retrieval. They need not be directly related but they help when at the point of studying, you constantly make mental associations between the things you learn and the things you're doing, or engaged in. Explaining to friends about the ideas and challenging each other's understanding of the concepts helps immensely.

When it comes to learning, it pays to understand the organ we're using to learn so that we can trick it into doing what we need it to.

28Apr/120

Efficient Monopoly

By Kevin

A while back, I wrote an article about the failures of competition in the context of Singapore - where we've failed to set up the competition in a way that benefits the society. Consequently, the result of the competition becomes wasteful and often rather dismal to those involved in the race but didn't emerge anywhere close to victors. But David Brooks (author of 'The Social Animal'), points out in an article on New York Times, that we may have overlooked the 'monopoly' in the context of competition in this world.

He sets up the 'monopoly' situation as diametrically opposite of competition but the truth is that 'monopolies' are actually trying to compete as well but they see a larger and more open playing field than those who are engaged in fierce competition in one aspect. Obviously pulling ahead of competitors is not just about mirroring what they do but innovation, often setting yourself apart from them can be immensely valuable. What is forgotten, however, is being so different that you simply create a 'monopoly' altogether.

John Paulson

The Contrarian

The evolutionary landscape that competition is sort of 'model' after features 'monopolies' as well. In Eric Beinhocker's Origin of Wealth (which I read quite a while back); he talks about the need for innovators that tries to jump around the landscape rather than groping around his existing location for peaks. Fierce competition, the sort described by Brooks, is characterised by incremental improvements that allows you to gain advantage over your rivals, much like a mountain climber scaling a specific peak, trying to outdo his rivals by going via the steepest path so that he can get there in the shortest time. And he does so by figuring out the direction he must head in, in order to accent the fastest (global optimization on a R-n landscape has the same sort of spirit but as usual, in mathematics we always imagine rather smooth surfaces that makes things easy - the fitness landscape is hardly smooth).

The good 'monopolist', however, is the innovator who leaves this peak in search for a higher peak or more difficult one to outdo his rivals. Or perhaps he decides he'll dive into ocean trenches instead rather than climb mountains. Opening up a new field and dominating it pays off handsomely in the long run. It also requires one to maintain the bigger picture of the situation. And that is what we observed in the case of John Paulson during the height of the Subprime Mortgage bubble. As an 'outsider' from the mainstream Wall Street, he carefully studied, monitored and analyzed the over-extension of credit in the Subprime Mortgage market before he started taking on short positions that ultimately paid off during the crisis.

Traditional competition, that Peter Thiel is arguing for people to 'avoid', distorts our perception of risks because it captures you into the system and makes you fearful of falling behind when you do something different. When everyone is reading their textbooks and preparing for exams, it would seem somewhat unwise to be reading some other popular Economics books or even the Bible. Yet as a student captured in this whole paper chase, one needs also to realise that there is little value in re-reading what one has been reading for practically the whole year. Combining the content learnt with newer, obliquely relevant knowledge improves your associative memory and can remarkable enhance the ability of questions to trigger knowledge you've already acquired previously over the term. More of this next time on ERPZ.

The key here is that one needs to master the art of being a 'good monopoly' even as one gets too caught up with competition. And this monopoly, would be an efficient one.

24Apr/120

Wasted Eureka

By Kevin

Once again, another batch of students are encountering Project Work for the first time in their lives and fearing for it. I'm looking into the two questions and providing a bit of guidance on how to go about tackling them much like what I did for the students last year (here and here).

Paro the Seal

Seal that heals

This year's question follows the standard PW format; which goes by the 'research-then-implement' structure. The point is always to get you to study a particular issue/topic/area and then make use of your findings to design an implementable plan with specific actions. Likewise, both questions are usually similar or overlapping to a certain extent. They are quite general as usual and allows much room and space for creativity - something we Singaporeans seem to be mocked for lacking.

The Eureka Moment

Aim
This project task encourages you to explore the world of invention and/or discovery in a particular field and then use your findings to benefit the community

Task Requirements
Identify an invention/discovery in a particular field (eg. in science and technology, medicine, transport, design and construction, consumer goods and services, etc.) and show what its impact has been.

Suggest how your chosen invention/discovery could be adapted to meet a need in the community.

This first question deal with inventions or discovery and obviously you have lots of them to choose from; select something you're interested in and with information available, preferably something that has been implemented somewhere or tried out and you can use the results of the trial to justify your plan. I would advise you to start off with identifying the invention/discovery before trying to think of a need in the community to be met by it. Starting with the need could be challenging. Once you've got your invention/discovery; ask yourself the following:

  • What are the impacts of the discovery/invention?
  • What is the original motivation/intent behind the discovery or invention?
  • How is it applied in the real world? Does it solve a problem, improve on an aspect of life?
  • Who does the invention/discovery help? Where and when was it used?
  • Is there any side-effects, unintended consequences, dangers?
  • Can the invention/discovery be adapted to a similar community in Singapore or around us? How can you reduce any risk that comes with applying the invention/discovery? What kind of difference can you make with this adoption?

Something interesting people might want to look into is that of robots; I recently took notice of this invention, 'Paro the seal', which is a social robot designed to accompany elderly. It could meet the need of an ageing population with lonely elderly folks perhaps. And Sherry Turkle voiced some concerns about this.

Now we move on to the next task option.

Waste Not, Want Not

Aim
This project task encourages you to consider the issue of wastage in a particular area and to suggest ways to reducing such wastage.

Task Requirements
Identify an area (eg. of any natural resource, money, time, food, opportunity, etc.) where wastage takes place and show the present and future impact of such wastage.

Draw up a plan to highlight the problem to a specific group in the community and suggest ways in which they might reduce the wastage.

Now this task deals more specifically with a kind of problem. Still, wastage can be on anything so there's much scope for exploration. 'Wasted opportunity' alone can practically be anything. Choose something that can be wasted but that waste can also be salvaged or put into some other better use then the way it is used now.

  • Why is it wasted at present? How does this waste arise? (Eg. Banana peels waste emerges from consumption of bananas)
  • How is the waste currently treated? Ignored/Disposed? Used but not efficiently?
  • Is there any residual value in the waste? Does the waste actually have value elsewhere? (Eg. Cow dung might be waste to the cow but fertilizers for the farmers)
  • Is there a mechanism for us to bring this residual value from one party (the one who wastes it) to the other (the one who needs it)?
  • Is there any cost involved in this transfer? Can we design a mechanism for that specific group in the community who can make use of the waste?
  • What would be the impact of reducing this wastage? Who benefits and how can the impact affect the society at large?
Reduced Price

Food Unwasted

Being based in London for my studies now; I could suggest looking into expired food and consumer products in supermarkets. You could do a project to survey the wasted perishable food that are disposed by supermarkets (like fresh vegetables, fruits, microwaved food, sushi, baked items, etc) every so often. And then a solution could be something like what is used in British supermarkets; that is to reduce the prices of these goods as they approach expiry date so that the supermarket can clear the stocks while recouping some of their cost and reduce wastage at the same time. I have not seen this in supermarkets in Singapore so it might be worthy to look into this.

Please try not to end up copying the suggested ideas because if you can see this post, a thousand over other students or more would see it and your tutors too, would be able to see this set of guidance and possibly use it for their class.

All the best!

21Apr/120

Ageing Happy

By Kevin

Population is something mentioned somewhat regularly on this blog; not only because it is an important variable in social sciences but also because it affects every single one of us more than we normally imagine and that it is a statistic we continually contribute to by our mere existence. I mentioned a while back that I wrote population study papers back in High School. What I didn't mention was that I was studying the ageing population in Singapore. I was looking at what brought about the ageing scenario in Singapore (the institutionalization of the two-child norm and aggressive anti-natalist policies converging with socio-economic development) as well as some potential consequences - higher burden on society, etc.

On aggregate measures, Singapore has somewhat managed to avoid the costs through 'import' of youthful migrants and permanent residents. But I've perhaps left out a major consequence about the presence of an ageing population; I mentioned advantages such as potentially lower crime rates but I made no mention about putting their experience and knowledge into good use. I mentioned about how new niche markets relating to healthcare may emerge but made no reference to the fact that people who live longer might actually be better at dodging health problems that younger people usually face and there's probably some opportunities there.

In any case, Laura Carstensen probably gave a good idea of the perspective that is largely lost in our doom and gloom perception of an ageing population. Perhaps the point about the aged being happier is important as well; and an emotionally stable, knowledgeable, and healthy (if not strong) population can indeed prosper in ways we have never properly sat down to contemplate about.

20Apr/120

Passion Trade-Off

By Kevin

Draw Something

Do Something, on the side....

I was reading this entry on the HBR blog and found it incredibly perceptive if not insightful. We all have this incredibly strange tendency to believe in an 'all-or-nothing' situation even when we don't actually live such lives. Perhaps we enjoy the binary-choice questions both because they are simple and elegantly reflects our priorities but we almost definitely would hate to be put into that kind of situation where there appears to be no 'third' way.

So must there really be a trade-off? Can't you hold on to your job while trying out something new in the backyard of your home in hopes that you'd create a new product for your future firm? Can you not work as an accountant by day and sing in a bar in the evenings? The people who succeed in doing what they really enjoy and receive the financial fruits do not always simply plunge into something that was initially judged as impossible or unprofitable. They experiment and achieve small wins that leads on to big wins; sometimes it is about persisting through the whole series of failures and hanging on (which might be impossible if you take the all-or-nothing mindset).

OMGPOP, the firm behind the overnight sensation app 'Draw Something' started out as a 'joke' according to its founder and was on the verge of winding up after 35 failed attempts to create an app that generates sufficient revenue for the firm. And then all of a sudden, Zynga came and bought the struggling start-up for $180 million. So were those guys lucky? Yes. But did they hold on to the firm because they believe they'll get lucky? I guess not; it was something closer to passion.

Sure, you can always imagine that if you had not put in that much in your passion, you could have made more money and live a more comfortable life. Or that if you had not suppressed your passion and pursued that high-paying job, you'll be happier. The grass is always greener on the other side. Learn to realise that you can actually balance it. And that life is not all-or-nothing.

20Apr/120

Personality vs Character

By Kevin

To put Susan Cain's ideas in a rather more coherent way; an introvert is someone who gets energy from low levels of social stimulation while the extroverts are people who are energized by high levels of social stimulation. It's great to see a book like Quiet published. And I was pretty moved by Susan's talk in part because I really appreciated the position she was describing, and in part because she presented herself as a really genuine, quiet cheerleader of the introverts.

The more interesting idea that I picked up from the talk was this idea about the transition from a culture of character to a culture of personality. Indeed, because of the ultra connected world and our obsession with efficiency and speed, we no longer have time to try and truly get to know people - we can't be bothered to. Therefore, we prefer bite-size pitches, 'superficial' demonstration of abilities, outright self-confidence, the easily-identified bright spot. Personality supersedes character; even though I suspect that in long term, it really is the people with good character whom you should hang on to.

We need to re-discover character-building; we need to discover people's character to know them and not just by their personalities. Only when we take the time to discover them, people would start realising the importance of building that up. The decline of character-building is also why people are more easily irritated by failure, intolerant of difficulties and drudgery, quick to anger and slow to forgive.

Hurry

Virtuous Haste?

I came across this image a couple of days back and was amused by it. But I've also discovered how mutated our culture has become; indeed, 'hurrying' has already become a virtue, just by the sheer number of people upholding it. So what's with the haste? Why not sit back and think about where has persistence, endurance, patience gone? What's with the obsession with quick fixes and speed? The way we see 'time' has indeed altered our judgments of the merits of the man of actions and the man of contemplation. While those men of action should sit back and contemplate, those men of contemplation need to summon the courage - in Susan Cain's words - 'to speak softly'.

18Apr/12Off

Connected Isolation

By Kevin

I was watching Salman Khan's talk on TED before I stumbled upon Sherry Turkle's. It was an amazing contrast. And I'm not referring to the tone and attitudes towards technology of both speakers. I was thinking about the role that technology plays and the things it has done for us. As a matter of fact, technology is truly good at seizing a human need and trying to satisfy it; and it sometimes creates new needs that it goes on to satisfy subsequently. It seems, however, that as we try to tap on technology to free up time for more valuable interaction, the more we end up interacting through technology and forgoing real communication for what we believe to be exchanges.

"What technology makes easy is not always what nurtures the human spirit." - Sherry Turkle

I was incredibly moved by how perceptive Sherry was in observing the sort of impacts that our little devices have on us and how profound they are in their interaction with our human spirit. And I'm equally afraid; is there truly a trade-off the way Sherry makes it out to be? Can we not raise kids in these environment and yet have them still grow up to be able to interact and communicate in the humanly way we all really desire? Do we really have to be addicted to editing/beautifying/augmenting our communications with technology just because we use it regularly?

Maybe we should also ask ourselves what kind of values have arisen from this age of emphasis on the superficial value of things. Our enhanced abilities to present ourselves in debatably deceitful ways (make-up, stuff bought on credit, edited photographs, auto portrait enhancement functions on cameras, just to name a few) have made us feel less spurred by the need to nurture our intrinsic self. And Sherry is trying to point out that technology that makes us constantly trying to be 'connected' removes these opportunities for self-reflection that would cultivate this self. Instead, they reinforces it, they allow us to edit ourselves, put up 'presentable versions' of ourselves and the way we communicate. And we become afraid of showing our true self - like a girl who puts on make-up all the time and now refuses to see anyone without her make-up on.

For a moment towards the end of Sherry's talk I was reminded of the film, Surrogates. It was as if she was calling out for all humanity to stand out and live as themselves instead of trying to insulate their real selves from the real world. Indeed, the distance we've built to make ourselves comfortable with being able to meet and interact with more people has similarly isolated us and prevent us from becoming closer to one another. It is a scary prospect, but like Sherry, I think it need not be a trade-off. It may take more technology; but it will also take changes in our own thinking, values and worldview.

14Mar/12Off

Sandel & Justice

By Kevin

In anticipation of Michael Sandel's lectures in the LSE last week, I ended up (re)watching his entire Justice Harvard series again. It was fun reviving the philosophical discussions in my mind and thinking about tricky issues again. Then I attended the LSE Public Lecture 'Should a Banker be paid more than a Nurse?', which turned out to be a little disappointing but understandable because the lecture, being opened to the public, reduced the discussion to one that was charged with subjective judgments. It was less intellectual than intended and difficult to drive forward for Sandel because the framework utilized by the contributors were often inconsistent when they applied their arguments.

Perhaps the worst was that some were searching for an irrefutable stand rather than what they think should be the case. Ultimately, when one observes the lectures at Harvard, one could observe that the students of philosophy transcends the specific issue at hand and considers moral implications of their stand on other matters - little of that was observed at this public lecture.

Michael Sandel did a good job wrapping things up and facilitating the discussions even when I suspect he failed to bring out a point about the morality of markets, that I believe he might be trying to make. In any case, I could probably only settle on waiting for his next book.