Nassim Taleb & Benoit Mandelbrot on PBS Newshour talk about the current ecology of the financial industry during 2008 Financial Crisis (Air date October 21, 2008).
Transcript available here: Top Theorists Examine Rippling Economic TurbulenceAs the financial sector shifts, so does the reach of the jolt to economic structures around the world. Economist Nassim Nicholas Taleb and his mentor, mathematician Benoit Mandelbrot, speak with Paul Solman about chain reactions and predicting the financial crisis.
A peculiar video on YouTube titled “Nassim Nicholas Taleb” and only coming with the vague description: “Tips on life from a man who’s done a lot of thinking and knows a lot of people.” It is not clear who this video is from, possibly Nassim himself but unlikely, probably more likely a friend/acquaintance. As he describes at the start it is filmed at Heathrow Airport Terminal, a place he often criticises for being terribly designed and over optimized, the planners obviously having no appreciation of the non-linear effects of congestion.
Paul Solman explains “hedge funds” and why “Black Swan” events make it harder than might be expected to reduce investment risk (October, 2006).
Transcript: “Nassim: The difference between Hedge Funds, and Mutual Funds, is that Mutual Funds take your money and they have a lot of constraints on what they can do for you. A Hedge Fund has usually more freedom, to invest, to make bets, to gamble, to do whatever you want.
Paul: OK lets take it back to 2000, I have a lot of finance professor friends, so of whom would presumably go