Taleb tries to inform a group of economically ignorant legislators. Congress is completely clueless in regards to simple concepts such as “risk”. Taleb mentions that our society is “over-financialized” because debt to GDP has grown to unsustainable levels and that our children and grandchildren will be punished for the foolish risks that government has taken with deficit spending, drastically increasing public debt, and central planning. Unfortunately Congress has not listened and continues to spend, as they are naive enough to believe that throwing money at our problems will solve everything.
Taleb wants to suspend VaR, however that is only one minor issue. The major issue at hand is Congress; how Congress facilitates, encourages, rewards, foolish and disastrous behavior. Congressional oversight of the Federal Reserve Bank and Ben Bernanke is non existent. Congressional oversight of Housing and Urban Development is non-existent. Congressional oversight of MLB players accused of using anabolic steroids is absolutely exceptional. Luckily, Congress is there to prevent the world from losing interest in something as significant as baseball. If anything will bring about hyperinflation and/or a world wide catastrophe, it is baseball and the lack of oversight. Don’t worry about imbeciles like Paul Volcker and Alan Greenspan… go after Curt Schilling! Forget about those who created the housing meltdown and the Great Recession… forget about Andrew Cuomo, Bill Clinton, Franklin Raines, Jamie Gorelick, Jim Johnson, Rahm Emanuel, Chris Dodd and Barney Frank… go after Roger Clemens! Forget about unfunded liabilities in the ten of trillions – and perhaps hundreds of trillions – created by Ponzi Scheme policies… go arrest Mark Mcgwire!