The Value at Risk in the Financial Crisis That's Working

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Every day the turkey is being taken care of by the farmer. And thinking every day h gets additional and new evidence that it's safe, it's fine. A value at risk in the financial crisis that's working. It's fine. Wewe're making profits every quarter. So i have no problem people taking risk, so long as a go on,. not, you know, doesn't threaten the whole a human race.

Nassim Nicholas Taleb, author of Antifragile, Black Swan, and Fooled by Randomness, talks with EconTalk host Russ Roberts about a recent co-authored paper on the risks of genetically modified organisms (GMOs) and the use of the Precautionary Principle. Taleb contrasts harm with ruin and explains how the differences imply different rules of behavior when dealing with the risk of each. Taleb argues that when considering the riskiness of GMOs, the right understanding of statistics is more valuable than expertise in biology or genetics. The central issue that pervades the conversation is how to cope with a small non-negligible risk of catastrophe.