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Nassim spoke to Bloomberg News while he was at the SALT Conference in Last Vegas from May 10th to the 13th. Bloomberg has put up four short videos with him on their website, which we share below.
The Importance of Probability:
Comparing Monetary Policy to Drugs:
Recently on twitter, Nassim shared this chart comparing outcomes with Clinton as president versus Trump. In response to a question about Sanders versus Trump, he tweeted: “Bernie v. Trump I go Bernie because his domestic policies won’t go through and his foreign policies are clearer.”
He also followed up with these tweets: “Hillary and Bush have done the most to harm minority populations in the Levant & Iraq since Genghis Khan.” “2/What I mean by rigorous is not making assumptions/ certainties when there is uncertainty. Shillary offers certainties, Trump fewer ones.”
On his facebook page, Nassim recently posted links to a new short technical paper on the probability distribution of p-values and a video commentary. He wrote:
I was able to pull out the exact meta-distribution of p-values (i.e. p-values as random variables).
The point is that the same phenomenon will produce p-values all over the map. A true p-value of .12 will produce p-values <.05 more than half the time, so people may never replicate and get the same result.
One Hundred Years of P-Value Bullshit!
Here is the text of the paper, which was originally posted on his website, Fooled By Randomness.
[facebookpost https://www.facebook.com/permalink.php?story_fbid=10152111753388375&id=13012333374]
Abstract: Proof that under constraints of Put-Call Parity, the probability measure for the valuation of a European option is risk neutral under any general probability distribution, bypassing the Black-Scholes-Merton dynamic hedging argument, and without the requirement of complete markets. The heuristics used by traders for centuries are both more robust and more rigorous than held in the economics literature.