“My favorite interviewer.” “Oh, please.” Great ending to a great interview. Sparks always fly when smart people meet and have quality exchanges. And we all grow through it.
7:01 "The idea is you cannot fool people forever." 100%. The behavior that Taleb is describing has been going on for years, decades even. But people were largely ignorant of it due to an information asymmetry, where the plebs did not understand how the policymakers were duping them, for example by encouraging big investors to take risky behavior because the upsides were massive and if they needed bailing out, they would be. What rational creature wouldn't behave the same way with such incentives where the potential benefits were large, and the risks practically nil. Taleb is right. You can't fool people forever. Eventually they start to get wise to what's happening and once they fully comprehend how the game is secretly stacked against them, first revolt and then eventual revolution is the likely outcome. Much like the market crash in '08, it's not a matter of if this will happen, but rather *when*. Could be 10 years. Could be 2 years. Could be 2020, wth the coronavirus fears as the kindling on the proverbial fire that's waiting to be lit ablaze.
bob what a idiot I am the same J2 DNA ,i live 10 min of Israel my ancestors were Hellenized Jew before Christianity. The real Jewish in an intellectual not a dangerous idiot like yourself
bob you want me to develop the link between Phoenician and Cannanite they are the same people if I say Taleb is Greek Phoenician that mean he is semit, you want me to discuss about the torah fundamentals here?
Is health care calibrated? It seems to me health care providers get to define what good healthcare is not consumers. Providers and insurers even decide what the prices (incentives) should be for different kinds of care.
Healthcare is exempted from free market forces for the simple reason that economists posit a "rational consumer" The problem is, if you are sick or going to die, you are Not rational and will pay any price, so there is no incentive toward greater quality and lower cost as it is in normal capitalism.
You should read skin in the game. But then go back, read fooled by randomness, black swan, and antifragile. Depending on your interest in finance, his most amazing book is actually Dynamic Hedging.
A class of people who are not accountable includes doctors as well, which is very dangerous because they can do any harm without being held acountable...There is no proof many times and therefore no penalty...
Goldman used to be a partnership, where the management (partners) had skin in the game, i.e. they will gain/lose money if the company gains/loses money, and therefore will be incentivized to act accordingly, making prudent bets with appropriate hedging. But since they have become a public company, the management is only rewarded when the company earns money, and is not penalized on the flip side. I believe this is just an example to illustrate the necessary structure to encourage the proper incentives and is not a reflection of GS as a company.
Is it just me but I find it weird that the images of the traders in the background they look like they sitting in the middle of the table between the interviewer and guest. 🤔
Issue: Unearned Rent/Revenue is the phrase referenced by futurists who work outside corporate control. Skin-in-the-game may have asymmetric consequences. Taleb used the word "survival" during his discussion with the interviewer. Interesting word to use. GTR - The Hunter
LOL people don't learn, they get shafted by X and then vote for Y that shafts them in another way and then people see that and vote for Y that also shafts them XD
Basically he had a strategy he used in the 1987 crash where if the market stayed the same or when up he would make a little, if the market when down a little he would loose a small amount, and if it went down a lot he would make a lot. One shouldn’t just short if they aren’t sure on the timing and shouldn’t just buy puts consistently since most will expire worthless. What he did from my knowledge to provide this insurance was that he would sell at the money puts and buy multiple 2 standard deviation puts with a small amount of the premium he earned from selling the at the money put. This way if the market stayed the same or went up he would make a small amount, if it went down a little he would loose a little since his short put is in the money but his far out of the money puts are still out of the money, and if the market went down a lot the deep of the money puts would be in the money and profitable enough to compensate for the losses on the single short put and he pocketed the rest.
Taleb bills should be paid by the fed (plus any bets) and he can keep the winnings as long as he keeps telling us why this is bad: is he a genius or just a normal guy in a world of educated idiots and rentiers??
Nice, but hypocritical, becouse the richs that overvaluated the system, are the same who Talebs ains to invest in Universa - minimum 50 millions USD required, that is a small portion of their wealth.
Male interviewer are almost always the "worst". (I am a male). They always have that ego clash or whatever whenever interview the well known people or great minds. Please do the interview with a female interviewer.
Nassim forgets that CEO's are taking immense risks by being the CEO because of lawsuits, image and accounting practices. That's the main reason why their salaries are so high. Founders who already sacrificed their lives for the company usually pay themselves little to nothing in order to display intrinsic motivation. For a hired CEO the decision to work for a firm is based largely on compensation for the risks.
![This Investment Strategy Will Change You FOREVER [Nassim Taleb, Tim Ferriss]](/img/n.gif)
“My favorite interviewer.”
“Oh, please.”
Great ending to a great interview.
Sparks always fly when smart people meet and have quality exchanges. And we all grow through it.
A B he has certainly improved on his listening. But come on he is not smart
I love when this anchor bring on Taleb and asks him a few trading questions. Keep doing it!!!
7:01 "The idea is you cannot fool people forever." 100%. The behavior that Taleb is describing has been going on for years, decades even. But people were largely ignorant of it due to an information asymmetry, where the plebs did not understand how the policymakers were duping them, for example by encouraging big investors to take risky behavior because the upsides were massive and if they needed bailing out, they would be. What rational creature wouldn't behave the same way with such incentives where the potential benefits were large, and the risks practically nil.
Taleb is right. You can't fool people forever. Eventually they start to get wise to what's happening and once they fully comprehend how the game is secretly stacked against them, first revolt and then eventual revolution is the likely outcome. Much like the market crash in '08, it's not a matter of if this will happen, but rather *when*. Could be 10 years. Could be 2 years. Could be 2020, wth the coronavirus fears as the kindling on the proverbial fire that's waiting to be lit ablaze.
4 years later and more relevant than ever.
What is
Greek Orthodox Phoenician at his best!
He's a Jew.
Taleb is a Greek Orthodox :P
bob what a idiot I am the same J2 DNA ,i live 10 min of Israel my ancestors were Hellenized Jew before Christianity. The real Jewish in an intellectual not a dangerous idiot like yourself
bob you want me to develop the link between Phoenician and Cannanite they are the same people if I say Taleb is Greek Phoenician that mean he is semit, you want me to discuss about the torah fundamentals here?
bob pay me first for the statement and I will continue to develop!
How many years and how many ladders do you have to climb to become a CEO?
Is health care calibrated? It seems to me health care providers get to define what good healthcare is not consumers. Providers and insurers even decide what the prices (incentives) should be for different kinds of care.
Healthcare is exempted from free market forces for the simple reason that economists posit a "rational consumer" The problem is, if you are sick or going to die, you are Not rational and will pay any price, so there is no incentive toward greater quality and lower cost as it is in normal capitalism.
Sick or uneducated people shouldn't decide policies for the rest of the population. Sadly this is what democracy is about.
Dang, that is a densely packed 11min of knowledge dump by Taleb.
Where is this 11 minutes
Does the interviewer one time say what the name of the book's called? This entire interview I'm thinking i gotta read this thing whats it called
Skin In The Game by Nassim Taleb
Read the whole stuff together, its called Incerto by Nassim Nicholas Taleb.
Skin in the Game: Hidden Asymmetries in Daily Life
You should read skin in the game. But then go back, read fooled by randomness, black swan, and antifragile. Depending on your interest in finance, his most amazing book is actually Dynamic Hedging.
A class of people who are not accountable includes doctors as well, which is very dangerous because they can do any harm without being held acountable...There is no proof many times and therefore no penalty...
Really hard to prosecute a doctor because doctors are not willing to testify against each other
Interesting interview but not really getting what is being said about Goldman at the end there...
Goldman used to be a partnership, where the management (partners) had skin in the game, i.e. they will gain/lose money if the company gains/loses money, and therefore will be incentivized to act accordingly, making prudent bets with appropriate hedging. But since they have become a public company, the management is only rewarded when the company earns money, and is not penalized on the flip side. I believe this is just an example to illustrate the necessary structure to encourage the proper incentives and is not a reflection of GS as a company.
Yeah, i love the concept of skin in the game, just didn't get the last part but now I do. Thank you sir.
Is it just me but I find it weird that the images of the traders in the background they look like they sitting in the middle of the table between the interviewer and guest. 🤔
Yeah, its weird
Issue: Unearned Rent/Revenue is the phrase referenced by futurists who work outside corporate control. Skin-in-the-game may have asymmetric consequences. Taleb used the word "survival" during his discussion with the interviewer. Interesting word to use.
GTR - The Hunter
Taleb On Point - The EU has no "skin in the game" for poor regulation in the UK. They do not live there.
nope; Taleb would call you an IYI
taleb is a very smart manbaby
Hahahahaha this is hilarious
Best economist
He is more of a statistics guy and is very anti-economist.
Navi Gator that was the point of the comment
Ahmed Shousha Ok professor
The title seems to go against his philosophy of fragilista and antifragalista
LOL people don't learn, they get shafted by X and then vote for Y that shafts them in another way and then people see that and vote for Y that also shafts them XD
His space type is only about market drops and how he is great when it drops . Does he talk or know anything else
Is his ego were quoting on the stock market, it would be the best investment ever, because it grows and grows without any external input.
however, he basically cashes millions by applying what he preaches; legit to me
I like to be over-insured
Insurance from market drops? Well,
ever heard of
shorting?
Shorting is profitable but dangerous. Cannot be called an insurance :)
ever heard of puts?
Ever heard of bail outs, investment banks got the most anti fragile system out there!
Basically he had a strategy he used in the 1987 crash where if the market stayed the same or when up he would make a little, if the market when down a little he would loose a small amount, and if it went down a lot he would make a lot.
One shouldn’t just short if they aren’t sure on the timing and shouldn’t just buy puts consistently since most will expire worthless. What he did from my knowledge to provide this insurance was that he would sell at the money puts and buy multiple 2 standard deviation puts with a small amount of the premium he earned from selling the at the money put. This way if the market stayed the same or went up he would make a small amount, if it went down a little he would loose a little since his short put is in the money but his far out of the money puts are still out of the money, and if the market went down a lot the deep of the money puts would be in the money and profitable enough to compensate for the losses on the single short put and he pocketed the rest.
@@alexanderleo6809 nothing anti fragile about bail outs! Purely fake strength
I wish I can sell options then allowed bankrupt during a black swan.
Taleb bills should be paid by the fed (plus any bets) and he can keep the winnings as long as he keeps telling us why this is bad: is he a genius or just a normal guy in a world of educated idiots and rentiers??
Nice, but hypocritical, becouse the richs that overvaluated the system, are the same who Talebs ains to invest in Universa - minimum 50 millions USD required, that is a small portion of their wealth.
nope; he profits from the idiocy of the reckless market players
Male interviewer are almost always the "worst". (I am a male). They always have that ego clash or whatever whenever interview the well known people or great minds. Please do the interview with a female interviewer.
Nyein Chan This guy is a male space cadet.
The art of saying nothing.
The art of not listening.
Nassim forgets that CEO's are taking immense risks by being the CEO because of lawsuits, image and accounting practices. That's the main reason why their salaries are so high. Founders who already sacrificed their lives for the company usually pay themselves little to nothing in order to display intrinsic motivation. For a hired CEO the decision to work for a firm is based largely on compensation for the risks.
haha you think when a corporation gets sued, its the CEO who is at risk? Are you dense?
Taureg Yes he is, because he can become personally liable if it could be seen that he acted in an irresponsible way.
And what percent of CEO's does that happen to?
Costco
Dense is not enough. Jackass and stupid
Where's this my Muslim brother from? He's smart
He's christian lol
Johnson Black lol 😂 oopsie...
Talab is from Lebanon. His parents are Greek Orthodox although his own religion is unknown.
He's christian, if you have read all his books
Johnson Black no I haven't read his books yet. Have you?