Richard Bookstaber

Richard Bookstaber, a seasoned risk expert and former regulator, joins Genevieve Hayman to discuss the failures of traditional financial models. He highlights how human behavior and complex interactions drive market crises, using the nightclub analogy for emergence. Bookstaber critiques equilibrium models and explains the importance of incorporating networks and contagion into risk management. The conversation touches on the revolutionary role of AI in creating realistic market simulations through agent-based modeling, emphasizing the need for new financial education that addresses complexity.

Richard Bookstaber, a risk management veteran and author of "A Demon of Our Own Design," dives into the current market's unsettling trends. He discusses the impacts of inflation and Fed policies, and questions if we're in an unsustainable bubble. The conversation covers significant risks like market leverage and liquidity issues, while drawing parallels to past crises. Bookstaber emphasizes the need for diversification in investment strategies amidst escalating structural vulnerabilities and the fallout from speculative behaviors.