Wednesday, June 10, 2009
Taleb: "Obama's Attempts to Fight the Financial Crisis with More Cash is like Treating a Bad Tooth with Novocain Instead of a Root Canal"
In the quote of the day, Nassim Nicholas Taleb told CNBC:
The Obama administration's attempts to fight the financial crisis with more cash is like treating a bad tooth with Novocain instead of a root canal...Do not delay a root canal. Don't do piecemeal solutions to a problem that is fundamental.
Taleb's previous one-liners include:
What is fragile should break early while it is still small.
No socialisation of losses and privatisation of gains.
People who were driving a school bus blindfolded (and crashed it) should never be given a new bus.
Do not let someone making an “incentive” bonus manage a nuclear plant – or your financial risks.
Counter-balance complexity with simplicity.
Do not give children sticks of dynamite, even if they come with a warning .
Only Ponzi schemes should depend on confidence. Governments should never need to “restore confidence”.
Do not give an addict more drugs if he has withdrawal pains.
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All his statements could be summed up to one, "Don't do this and that because something bad happens". It's like hearing a broken record all over again and again.
ReplyDeleteElli
That with the addict is a bad example !
ReplyDelete