Government doesn't understand that you don't give heroine to heroine adic because he has the roal symptoms. You should stop the problem early, not late. Second point is about governments, that people ask for more regulation. Do we not need more regulations? People are gont t go round it. I'd rather have something government owned than regulated. Smaller piece of it government owned and the rest unregulated,. when we may have to bail out one day. i'd rather own os than be forced to bail out some day. So where do we go from here? We're not going to learn them because the government's not going to let people pay those prices.
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.