Nassim Taleb in FT
Great article about academia vs real world trading:
We learn from crisis to crisis that MPT has the empirical and scientific validity of astrology (without the aesthetics), yet the lessons are ignored in what is taught to 150,000 business school students worldwide.
Academic economists are no more self-serving than other professions. You should blame those in the real world who give them the means to be taken seriously: those awarding that “Nobel” prize.
…The environment in financial economics is reminiscent of medieval medicine, which refused to incorporate the observations and experiences of the plebeian barbers and surgeons. Medicine used to kill more patients than it saved – just as financial economics endangers the system by creating, not reducing, risk.
Share this article: del.icio.us | Digg it | Netscape | reddit | Yahoo MyWeb |
Posted: October 23rd, 2007 under Equities, Europe, General.
Comments: 1
Comments
Pingback from Financial-Economics » Blog Archives » Oops - Carnival of the Capitalists
Time: October 25, 2007, 2:44 pm
[...] Nassim Taleb in FT Medicine used to kill more patients than it saved – just as financial economics endangers the system by creating, not reducing, risk. [...]
Write a comment