Money and Finance
- Analysis (bbc Radio): Why Minsky Matters
Link to podcast: Why Minsky MattersAmerican economist Hyman Minsky died in 1996, but his theories offer one of the most compelling explanations of the 2008 financial crisis. His key idea is simple enough to be a t-shirt slogan: "Stability is destabilising"....
- The Stiglitz Syndrome...
From Nassim Taleb in Antifragile:There is something more severe than the problem with Thomas Friedman, which can be generalized to represent someone causing action while being completely unaccountable for his words. The phenomenon I will call the...
- Taleb On Skin In The Game
Nassim Taleb of NYU-Poly talks with EconTalk host Russ Roberts about his recent paper (with Constantine Sandis) on the morality and effectiveness of "skin in the game." When decision makers have skin in the game--when they share in the costs and benefits...
- Nassim Taleb Quote
“…it is the suppressed risk in the statistical “tails” that matters—not the failure to see the last grain of sand. One analogy to economics: after the inception of the financial crisis in 2007–2008, many people thought that predicting...
- Clouds Seen In Regulators’ Crystal Ball For Banks
Five years ago, the financial regulators of the United States — and more broadly the world — didn’t see the storm coming. Would they if a new one were brewing now? The answer to that is far from clear. The regulators have more information now, and...
Money and Finance
How to Prevent Other Financial Crises – By Nassim Nicholas Taleb and George A. Martin
This article argues that the crisis of 2007–2008 happened because of an explosive combination of agency problems, moral hazard, and “scientism”—the illusion that ostensibly scientific techniques would manage risks and predict rare events in spite of the stark empirical and theoretical realities that suggested otherwise. The authors analyze the varied behaviors, ideas and effects that in combination created a financial meltdown, and discuss the players responsible for the consequences. In formulating a set of expectations for future financial management, they suggest that financial agents need more “skin in the game” to prevent irresponsible risk-taking from continuing.
- Analysis (bbc Radio): Why Minsky Matters
Link to podcast: Why Minsky MattersAmerican economist Hyman Minsky died in 1996, but his theories offer one of the most compelling explanations of the 2008 financial crisis. His key idea is simple enough to be a t-shirt slogan: "Stability is destabilising"....
- The Stiglitz Syndrome...
From Nassim Taleb in Antifragile:There is something more severe than the problem with Thomas Friedman, which can be generalized to represent someone causing action while being completely unaccountable for his words. The phenomenon I will call the...
- Taleb On Skin In The Game
Nassim Taleb of NYU-Poly talks with EconTalk host Russ Roberts about his recent paper (with Constantine Sandis) on the morality and effectiveness of "skin in the game." When decision makers have skin in the game--when they share in the costs and benefits...
- Nassim Taleb Quote
“…it is the suppressed risk in the statistical “tails” that matters—not the failure to see the last grain of sand. One analogy to economics: after the inception of the financial crisis in 2007–2008, many people thought that predicting...
- Clouds Seen In Regulators’ Crystal Ball For Banks
Five years ago, the financial regulators of the United States — and more broadly the world — didn’t see the storm coming. Would they if a new one were brewing now? The answer to that is far from clear. The regulators have more information now, and...