Comments on: Taleb’s Harsh Assessment of Bankers, Economists, and the Fed http://www.nakedcapitalism.com/2008/06/talebs-harsh-assessment-of-bankers.html Mon, 23 Nov 2009 01:53:25 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: marine http://www.nakedcapitalism.com/2008/06/talebs-harsh-assessment-of-bankers.html#comment-8884 marine Tue, 03 Jun 2008 04:19:00 +0000 http://www.nakedcapitalism.com/2008/06/talebs-harsh-assessment-of-bankers-economists-and-the-fed/#comment-8884 donna,if your're caught in a situation that you can't control the outcome,like dying, accept it graciously and do it with style.nobody likes a whiner or a cry baby.accept the inevitable. donna,if your’re caught in a situation that you can’t control the outcome,like dying, accept it graciously and do it with style.nobody likes a whiner or a cry baby.accept the inevitable.

]]> By: ceremona http://www.nakedcapitalism.com/2008/06/talebs-harsh-assessment-of-bankers.html#comment-8871 ceremona Mon, 02 Jun 2008 17:59:00 +0000 http://www.nakedcapitalism.com/2008/06/talebs-harsh-assessment-of-bankers-economists-and-the-fed/#comment-8871 Thanks for that post "anonymous". I guess I need a history lesson on the crash of 1987 a bit. I was only 17 and not really paying attention to the fundamentals of what was happening at the time. It's not clear to me what the time range was for the interest rate cuts or why slashing interest rates was the "fix" at the time. It's clear to me why the Fed thinks that this is the solution during the current downturn though. If the current dynamic is the same as in 1987, then I guess I understand it...sort of. Thanks for that post “anonymous”. I guess I need a history lesson on the crash of 1987 a bit. I was only 17 and not really paying attention to the fundamentals of what was happening at the time. It’s not clear to me what the time range was for the interest rate cuts or why slashing interest rates was the “fix” at the time. It’s clear to me why the Fed thinks that this is the solution during the current downturn though. If the current dynamic is the same as in 1987, then I guess I understand it…sort of.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/06/talebs-harsh-assessment-of-bankers.html#comment-8870 Anonymous Mon, 02 Jun 2008 17:51:00 +0000 http://www.nakedcapitalism.com/2008/06/talebs-harsh-assessment-of-bankers-economists-and-the-fed/#comment-8870 Eurodollars rallied big on the crash as everyone knew the Fed would (drum roll please...) slash interest rates and flood liquidity.<br/><br/>Futures up = yields down. He was long OTM calls, which is akin to being long index puts. Eurodollars rallied big on the crash as everyone knew the Fed would (drum roll please…) slash interest rates and flood liquidity.

Futures up = yields down. He was long OTM calls, which is akin to being long index puts.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/06/talebs-harsh-assessment-of-bankers.html#comment-8869 Anonymous Mon, 02 Jun 2008 17:36:00 +0000 http://www.nakedcapitalism.com/2008/06/talebs-harsh-assessment-of-bankers-economists-and-the-fed/#comment-8869 I gave up on Taleb's book before page 100. He struck me as an extremely academic dolt consumed with self-amazement. I wasn't impressed in the slightest. I gave up on Taleb’s book before page 100. He struck me as an extremely academic dolt consumed with self-amazement. I wasn’t impressed in the slightest.

]]> By: ceremona http://www.nakedcapitalism.com/2008/06/talebs-harsh-assessment-of-bankers.html#comment-8857 ceremona Mon, 02 Jun 2008 07:44:00 +0000 http://www.nakedcapitalism.com/2008/06/talebs-harsh-assessment-of-bankers-economists-and-the-fed/#comment-8857 I'm puzzled by how the crash of the stock market in 1987 would affect the value of the eurodollar and thus make Taleb Millions. Could someone explain that? Eurodollars are just a reflection of the 3 month LIBOR. I’m puzzled by how the crash of the stock market in 1987 would affect the value of the eurodollar and thus make Taleb Millions. Could someone explain that? Eurodollars are just a reflection of the 3 month LIBOR.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/06/talebs-harsh-assessment-of-bankers.html#comment-8853 Anonymous Mon, 02 Jun 2008 03:44:00 +0000 http://www.nakedcapitalism.com/2008/06/talebs-harsh-assessment-of-bankers-economists-and-the-fed/#comment-8853 Taleb provides the losers with their alibis and being a loser myself I was more than happy to take his advice and stay out of the market in fear of the black swans or their siblings. True I didn't make anything but given that with my small means it was more likely that I would have only three or four bites of the apple it pleased me that I had some middlebrow cover for staying out.<br/><br/>Ivan Taleb provides the losers with their alibis and being a loser myself I was more than happy to take his advice and stay out of the market in fear of the black swans or their siblings. True I didn’t make anything but given that with my small means it was more likely that I would have only three or four bites of the apple it pleased me that I had some middlebrow cover for staying out.

Ivan

]]> By: A. http://www.nakedcapitalism.com/2008/06/talebs-harsh-assessment-of-bankers.html#comment-8851 A. Mon, 02 Jun 2008 02:41:00 +0000 http://www.nakedcapitalism.com/2008/06/talebs-harsh-assessment-of-bankers-economists-and-the-fed/#comment-8851 A a dose of anti-Taleb is in order here for some balance. See this essay by Eric Falken. http://www.efalken.com/papers/Taleb2.html<br/><br/>One has to ask why is Taleb writing books and giving lectures instead of trading? Could it be that he's not very good at it, and yet lectures others? In a prior interview he refused to answer whether he lost money in the recent credit and banking crisis saying he doesn't mix the personal and professional. Lame excuse.<br/><br/>While I agree with him about academic economists and bankers, I don't see much in the way of profound thinkings in his books. I am at a loss at to why anyone would pay him gobs of money for a lecture. But they pay Clinton $100k a lecture, and by that standard he's a bargain. A a dose of anti-Taleb is in order here for some balance. See this essay by Eric Falken. http://www.efalken.com/papers/Taleb2.html

One has to ask why is Taleb writing books and giving lectures instead of trading? Could it be that he’s not very good at it, and yet lectures others? In a prior interview he refused to answer whether he lost money in the recent credit and banking crisis saying he doesn’t mix the personal and professional. Lame excuse.

While I agree with him about academic economists and bankers, I don’t see much in the way of profound thinkings in his books. I am at a loss at to why anyone would pay him gobs of money for a lecture. But they pay Clinton $100k a lecture, and by that standard he’s a bargain.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/06/talebs-harsh-assessment-of-bankers.html#comment-8850 Anonymous Mon, 02 Jun 2008 02:21:00 +0000 http://www.nakedcapitalism.com/2008/06/talebs-harsh-assessment-of-bankers-economists-and-the-fed/#comment-8850 Heard or not, most of the people live where the jobs are. Those, who are wealthy enough, don't care about the floods, earthquakes and other disasters they can buy insurance against. Heard or not, most of the people live where the jobs are. Those, who are wealthy enough, don’t care about the floods, earthquakes and other disasters they can buy insurance against.

]]> By: S http://www.nakedcapitalism.com/2008/06/talebs-harsh-assessment-of-bankers.html#comment-8849 S Mon, 02 Jun 2008 02:19:00 +0000 http://www.nakedcapitalism.com/2008/06/talebs-harsh-assessment-of-bankers-economists-and-the-fed/#comment-8849 he seems to be advocating cafes, so lets asume that is a wink to the vitual cafe of blogging. it counts he seems to be advocating cafes, so lets asume that is a wink to the vitual cafe of blogging. it counts

]]> By: Anonymous http://www.nakedcapitalism.com/2008/06/talebs-harsh-assessment-of-bankers.html#comment-8847 Anonymous Mon, 02 Jun 2008 01:20:00 +0000 http://www.nakedcapitalism.com/2008/06/talebs-harsh-assessment-of-bankers-economists-and-the-fed/#comment-8847 James....<br/>My point is even if people know about black swans, they would still follow the herd. Only exceptional contrarians plan for black swans.<br/><br/>In fact forget black swans.....even when events are relatively common but have low probability, people choose to ignore them in favor of the herd. That is why they live on the San Andreas fault in San Francisco and why homes are built on flood plains. A Ph.D. in Economics or an MBA doesn't take away the tendency to follow the herd....you just follow a different herd. James….
My point is even if people know about black swans, they would still follow the herd. Only exceptional contrarians plan for black swans.

In fact forget black swans…..even when events are relatively common but have low probability, people choose to ignore them in favor of the herd. That is why they live on the San Andreas fault in San Francisco and why homes are built on flood plains. A Ph.D. in Economics or an MBA doesn’t take away the tendency to follow the herd….you just follow a different herd.

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