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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2 comments:

  1. Real Estate in TorontoJune 12, 2009 at 5:33 AM

    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.

    Elli

    ReplyDelete
  2. christianJune 13, 2009 at 11:55 AM

    That with the addict is a bad example !

    ReplyDelete

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