What Happens When The "Ultimatum Game" Stakes Are Really High

The Ultimatum Game is a unique window into how humans actually make economic decisions and it is a distinctly opaque aperture.  The best we can probably do is to accept that context plays a far larger role in economics than classical models would suggest.  And don’t stare at someone or make angry faces if you want them to work with you. 

"We Arrested Some Folks" - How China "Fixed" Its Stock Market

“The authorities have arrested a lot of people, but we still don’t have a clear picture regarding the real reasons behind it. Sometimes we just tell ourselves that we don’t really need to know the truth, as long as the market goes up.”

Futures Extend Slide; Europe Has Biggest Weekly Drop In 2 Months; Commodities At 16 Year Lows

For once, the overnight session was not dominated by weak Chinese economic data (which probably explains why the Shanghai Composite dropped for the second day in a row, declining 1.4%, and ending an impressive run since the beginning of November) and instead Europe took the spotlight with its own poor data in the form of Q3 GDP which printed below expectations at 0.3% Q/Q, down also from the 0.4% increase in Q2, with several key economies rolling over including Germany, Italy, and Spain while Europe's poster child of "successful austerity" saw Q3 GDP stagnate, far worse than the 0.5% growth consensus expected.

Another Bubble Bursts: Ultra Luxury London Home Prices Tumble 12%

“The bubble may already have burst” for the most expensive homes, Barber said. Now, "36 percent of all properties currently on the market across prime central London are being marketed at a lower price than they were originally listed at, with the average reduction in price being 8.5 percent."

US Flies B-52 Bomber Near China Sandcastles: "Get Away From Our Islands!"

On the heels of Washington's move to send a guided missile destroyer to The South China Sea to counter Chinese "aggression," the US reportedly flew two B-52 strategic bombers "near" Beijing's man-made islands last weekend. There are competing accounts as to what took place, but this certainly looks like the latest escalation in an increasingly dangerous game of chicken.

An Interactive Look At China's Massive Coal Bubble

China has given the green light to more than 150 coal power plants so far this year despite falling coal consumption, flatlining production and existing overcapacity. Modelling this expansion, Greenpeace EnergyDesk suggests that this would cause 6,100 premature deaths a year — that’s 150,000 over a 24-year operating life.

China Panics: Sends Fiscal Spending Through The Roof As Credit Creation Tumbles

In a sign that the slowing economy, rising bank NPLs, and lackluster demand for credit from overleveraged corporates is overwhelming Beijin's easing efforts, China's October loan growth data came in far weaker than expected in yet another sign that all is most certainly not well with the world's engine of global growth and trade. Meanwhile, fiscal spending soared as it now appears Beijing may have no choice but to go the helicopter route if it hopes to reignite growth.