How to Prevent Other Financial Crises by Nassim Nicholas Taleb and George A. Martin
How to Prevent Other Financial Crises by Nassim Nicholas Taleb and George A. Martin
This article argues that the crisis of 2007–2008 happened because of an explosive combination of agency problems, moral hazard, and “scientism”—the illusion that ostensibly scientific techniques would manage risks and predict rare events in spite of the stark empirical and theoretical realities that suggested otherwise. The authors analyze the varied behaviors, ideas and effects that in combination created a financial meltdown, and discuss the players responsible for the consequences. In formulati