http://www.nakedcapitalism.com/2007/10/nicholas-taleb-attacks-pseudo-science.html Sun, 21 Mar 2010 09:19:41 -0400 http://wordpress.org/?v=2.8.4 hourly 1 http://www.nakedcapitalism.com/2007/10/nicholas-taleb-attacks-pseudo-science.html#comment-54839 Wednesday’s Links Value Plays Tue, 08 Sep 2009 05:02:39 +0000 http://www.nakedcapitalism.com/2007/10/nicholas-taleb-attacks-the-pseudo-science-of-modern-finance/#comment-54839 [...] Challenging modern thinking is always very [...] [...] Challenging modern thinking is always very [...]

]]> http://www.nakedcapitalism.com/2007/10/nicholas-taleb-attacks-pseudo-science.html#comment-1232 Anonymous Thu, 25 Oct 2007 08:50:00 +0000 http://www.nakedcapitalism.com/2007/10/nicholas-taleb-attacks-the-pseudo-science-of-modern-finance/#comment-1232 Yes I think that you must have some position from which you can criticize the standard theory. My friend is a professor and also works in a mathematical department. He may therefore write papers critical to the consensus theories. As a mathematician I see a tendency fo economists keep very hard to their theoretic framework and they often get very agitated over critique. Yes I think that you must have some position from which you can criticize the standard theory. My friend is a professor and also works in a mathematical department. He may therefore write papers critical to the consensus theories. As a mathematician I see a tendency fo economists keep very hard to their theoretic framework and they often get very agitated over critique.

]]> http://www.nakedcapitalism.com/2007/10/nicholas-taleb-attacks-pseudo-science.html#comment-1229 tracy Wed, 24 Oct 2007 21:40:00 +0000 http://www.nakedcapitalism.com/2007/10/nicholas-taleb-attacks-the-pseudo-science-of-modern-finance/#comment-1229 In 1989 I wrote a paper for a college econ course about the implications of chaotic (non-linear) behavior in macro systems. The Associate professors in the Dept thought it had value, the tenured professor said it lacked mathematical support. One item in my paper called into question not one Nobel, but two. I never got (was told not to expect) recommendations to grad school. Virtually every economic theory taught me in school was based on the observable fact that the sun came up yesterday, so it will come up tomorrow. In 1989 I wrote a paper for a college econ course about the implications of chaotic (non-linear) behavior in macro systems. The Associate professors in the Dept thought it had value, the tenured professor said it lacked mathematical support. One item in my paper called into question not one Nobel, but two. I never got (was told not to expect) recommendations to grad school. Virtually every economic theory taught me in school was based on the observable fact that the sun came up yesterday, so it will come up tomorrow.

]]> http://www.nakedcapitalism.com/2007/10/nicholas-taleb-attacks-pseudo-science.html#comment-1227 Anonymous Wed, 24 Oct 2007 20:11:00 +0000 http://www.nakedcapitalism.com/2007/10/nicholas-taleb-attacks-the-pseudo-science-of-modern-finance/#comment-1227 There is an interesting paper by a friend of mine who is a mathematical statistician and professor of finacial economics criticizing the prize in economics for the ARCH-models. He shows that that model gives very bad predictions of the volatility. You find his paper here<br/>http://129.3.20.41/eps/em/papers/0411/0411015.pdf There is an interesting paper by a friend of mine who is a mathematical statistician and professor of finacial economics criticizing the prize in economics for the ARCH-models. He shows that that model gives very bad predictions of the volatility. You find his paper here
http://129.3.20.41/eps/em/papers/0411/0411015.pdf

]]> http://www.nakedcapitalism.com/2007/10/nicholas-taleb-attacks-pseudo-science.html#comment-1219 Anonymous Wed, 24 Oct 2007 06:41:00 +0000 http://www.nakedcapitalism.com/2007/10/nicholas-taleb-attacks-the-pseudo-science-of-modern-finance/#comment-1219 I fully agree with Taleb Nasseb many of the mathematical models are flawed and only survive through their own tautology commonly enforced and enforceable.<br/>As regards the option-pricing model it bears its own weakness through the introduction of an implicit volatility.<br/>In essence the markets traders want to be lobotomised and secured through models, which do not include half of the variables required. I fully agree with Taleb Nasseb many of the mathematical models are flawed and only survive through their own tautology commonly enforced and enforceable.
As regards the option-pricing model it bears its own weakness through the introduction of an implicit volatility.
In essence the markets traders want to be lobotomised and secured through models, which do not include half of the variables required.

]]>