
Nicholas Nassim Taleb discussing the Financial Crisis causes and solutions with the US Congress. His advice is quite simple:
- De-leverage the system
- Stop transferring debt from private sector to public sector through bailouts
- Do not do deficit spending i.e. Stop printing money
- Reduce the size of banks, have many banks and remove the Too Big To Fail syndrome
- Do not pass laws thinking you understand or stop Risks to the system, because we don’t understand Risk as we live in a Complex world. Putting rules to stop bad behavior in this complex world is naive thinking.
I agree with Mr.Taleb…
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