Sunday, June 14, 2009

Save Our CEOs

Something tells me that Michael Moore's new movie will not be one through which President Obama can sit comfortably! He briefly but intensely criticized Hillary Clinton in Sicko even though health care was her issue, but I think his new assault on the fucking banking system is going to be a much broader critique for this administration.

Saturday, June 13, 2009

A world without Black Swans

Nassim Nicholas Taleb lists ten principles for a Black Swan-proof world. Most points relate directly to the current economic situation in the US.

"No soncialisation of losses and privatisation of gains. Whatever may need to be bailed out should be nationalised; whatever does not need a bail-out should be free, small and risk-bearing. We have managed to combine the worst of capitalism and socialism. In France i the 1980s, the socialists took over the banks. In the US in the 2000s, the banks took over the government. This is surreal." Nassim Nicholas Taleb

It was difficult to choose just one of Taleb's points to excerpt; they're all worth considering. BTW, a Black Swan is an event that is rare, has a large impact, and is deemed predictable after the fact. I might have to push Taleb's book of the same name to the top of my reading list.