New study finds: ‘IQ a myth’

The multidimensional nature of human intelligence is fascinating. We humans can be so smart and yet so dumb all at the same time. I have always felt that “EQ” or emotional quotient has greater impact on one’s life success than book-smarts or “IQ” numbers. Now a new Canadian study out of the University of Western Ontario finds that the idea that intelligence can be measured by a single number — your IQ — is simply wrong.

The study, published in the journal Neuron on Wednesday, involved 100,000 participants around the world taking 12 cognitive tests, with a smaller sample of the group undergoing simultaneous brain-scan testing.

“When we looked at the data, the bottom line is the whole concept of IQ — or of you having a higher IQ than me — is a myth,” said Dr. Adrian Owen, the study’s senior investigator and the Canada Excellence Research Chair in Cognitive Neuroscience and Imaging at the university’s Brain and Mind Institute. “There is no such thing as a single measure of IQ or a measure of general intelligence.”

Rather, the study determined three factors — reasoning, short-term memory and verbal ability — that combined to create human intelligence or “cognitive profile…

The researchers advertised their tests through New Scientist magazine and on discovery.com. Word quickly spread around the world, far surpassing the expectations of researchers, who expected only a few thousand participants. It became the largest online study on intelligence, allowing them to gather data across demographic, age and gender lines.”

Researchers have posted their tests on line here at Cambridgebrainsciences.com and are hoping to collect data from more than 1 million subjects worldwide. Login and be part of the study.

One of the study findings apparently, “people who play video games performed “significantly better” in terms of both reasoning and short-term memory.” Oops this will not help my cause in my on-going argument with my son to “get off screens!”

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Big banks to be government sponsored entities of next decade

This clip is a good discussion of the present banking landscape in the midst of demographic and behavioral shifts that are dramatically truncating the profit prospects for their business model. Joshua Rosner, an analyst at Graham Fisher & Co., talks about the outlook for U.S. banks, financial regulation and the residential housing market, Neil Barofsky, former special inspector for the U.S. Treasury’s Troubled Asset Relief Program, joins in. Here is a direct link.

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Shilling on the risk to stock and home prices in 2013

Shilling’s concerned about lower corporate earnings next year, which have the potential to drag on stock prices. His worries are three-fold: A global recession will occur, hurting revenue and by extension earnings; profit margins are about as good as they can get with companies having already implemented extensive cost-cutting; a strong dollar will weigh on U.S. corporations’ foreign profits and overseas operating expenses.

Shilling continues to remain bearish on the housing market because, as he sees it, the market has at least one major factor working against it.

Here is a direct link.

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