The Great Moderation of Volatility

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i remember, before elti san blew up, it was the same sit this is long term capital maon tom capital, exactly. We had ta blow up in 19 98. And anybody who stole a used value at risk after 19 98, wall had hada useof the problem. He needs to have his head examined. Because these events in 19 90 eighter should consist thatt thes bubbles at this crisis happen very fast.

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.