You don’t need a physics degree to ride a bicycle. Nor, Nassim Nicholas Taleb realized one day, do traders need to understand the mathematical theorems of options trading to trade options. Instead traders discover “heuristics,” or rules of thumb, by trial and error. These are then formalized by academics into theorems and taught to new generations of traders, who become slaves to theory, ignore their own common sense and end by blowing up the system. In a neat echo of its own thesis, Mr. Taleb’s paper making this point sat unpublished for seven years while academic reviewers tried to alter it to fit their prejudices.
Monthly Archives: November 2012
Antifragile is finally out, check it out on Amazon.
Nassim is currently on the book tour circuit until early December, checkout his schedule and list of appearances over at his website here: http://www.fooledbyrandomness.com/scheduledseminars.htm
James Surowiecki talks with Nassim Taleb about the current state of the economy and the dangers of debt.
Click for full resolution version.
Original link provided by Taleb: http://www.fooledbyrandomness.com/EdSmith.pdf
In November of 2012, immediately after U.S. Federal Reserve Bank Chairman, Ben Bernanke announced the implementation of Quantitative Easing II, Nassim Taleb contacted Bloomberg News interviewer, Erik Schatzker to say “Something has to be done about Ben Bernanke”.