complexity started rise ing in 19 95. And the risk of cascades increases. The internet, why? Lizie says she thinks it's because people are concentrating on their income. She argues that this leads to large right hand tails for a very small group of people. But also could be negative tales for someone with exposure.
Nassim Taleb talks with EconTalk host Russ Roberts about the financial crisis, how we misunderstand rare events, the fragility of the banking system, the moral hazard of government bailouts, the unprecedented nature of really, really bad events, the contribution of human psychology to misinterpreting probability and the dangers of hubris. The conversation closes with a discussion of religion and probability.