Taleb video: credit crunch not black swan, moral hazard now worse

From Bloomberg:

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Some great comments on the OMB (“lying on their forecasts”), Geithner (“who has a mortage on a house not far from mine… who didn’t understand risk and real estate prices”), Summers (“uses wrong mathematics in his papers” and has “systemic arrogance”), and Bernanke (“the one who crashed the plane”).

He has praise for David Cameron, whom he thinks understands how to solve the crisis.

Plenty of fodder for inflationists and bond bears here: Hard assets like metals and agricultural land would be a good way to protect value. Forget the stock market and most real estate.

Does anybody, such as professors, now understand the issues he raises? No. Don’t go to business school, but if you go, don’t take any business class that has equations in it: “it’s all bogus.”

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2 thoughts on “Taleb video: credit crunch not black swan, moral hazard now worse

  1. Quote: Don’t go to business school, but if you go, don’t take any business class that has equations in it: “it’s all bogus.”

    Had to laugh at this one. Got my MBA to learn a little about business and didn’t learn anything except the fact that I don’t like accounting…

    I think we’re going to get a chance to see if Exter’s liquidity pyramid is valid. There’s a fine line between hyperdeflation and hyperinflation and it’s mostly due to confidence. I favor hyperdeflation, but man I think we’re going to be skating on the razor’s edge. I sleep well at night with Gold (and my recently added shorts…).

  2. The best part comes around 8:35 when he mentions among his list of “fraudsters” the people who are preaching the effectiveness of government stimulus using a sample size of one (the Great Depression) where it appeared to work *after* a lot of creative destruction had already run its course.

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