The brain does not simply gather and stockpile information as a computer's hard drive does. Facts are stored first in the hippocampus, a structure deep in the brain about the size and shape of a fat man's curled pinkie finger. But the information does not rest there. Every time we recall it, our brain writes it down again, and during this re-storage, it is also reprocessed. In time, the fact is gradually transferred to the cerebral cortex and is separated from the context in which it was originally learned. For example, you know that the capital of California is Sacramento, but you probably don't remember how you learned it.

This phenomenon, known as source amnesia, can also lead people to forget whether a statement is true. Even when a lie is presented with a disclaimer, people often later remember it as true.

With time, this misremembering gets worse. A false statement from a noncredible source that is at first not believed can gain credibility during the months it takes to reprocess memories from short-term hippocampal storage to longer-term cortical storage. As the source is forgotten, the message and its implications gain strength...

...Psychologists have suggested that legends propagate by striking an emotional chord. In the same way, ideas can spread by emotional selection, rather than by their factual merits, encouraging the persistence of falsehoods...

...Journalists and campaign workers may think they are acting to counter misinformation by pointing out that it is not true. But by repeating a false rumor, they may inadvertently make it stronger. In its concerted effort to "stop the smears," the Obama campaign may want to keep this in mind. Rather than emphasize that Obama is not a Muslim, for instance, it may be more effective to stress that he embraced Christianity as a young man.

In 1919, Justice Oliver Wendell Holmes of the Supreme Court wrote that "the best test of truth is the power of the thought to get itself accepted in the competition of the market." Holmes erroneously assumed that ideas are more likely to spread if they are honest. Our brains do not naturally obey this admirable dictum, but by better understanding the mechanisms of memory perhaps we can move closer to Holmes' ideal. Link