Key takeaways from the discussion :

  • Taleb - Discredit Business Schools, CFA’s, math-fin programs which teach crap portfolio theory / gaussian theories
  • Taleb - 2 tiered structure , Banks should be made utility companies . High risk taking firms such as hedge funds should be left alone with a clear signal of NO BAILOUT under any circumstances.
  • Taleb - Semi government intervention will not work..NATIONALIZATION is the only solution
  • Daniel - Useless map is better than no Map, as it gives confidence for people to go out and venture. Useless models could be useful in the short term. They might be useful to predict daily weather but not hurricanes.
  • Daniel - Time scale problem : Individuals deal with short term problems, Corporations exist for long term.
  • Taleb- Doing nothing is far more useful than doing something in certain situations . Analogy of ancient medicine which killed more people than it healed.

This discussion reinforces my belief :  Being a fox is better than being a Hedgehog!

http://fora.tv/embedded_player