Monthly Archives: August 2012

Nassim Taleb Explains In An IMF Paper Why The Fed’s And ECB’s Bank Stress Tests Are Bogus – Business Insider

A New Heuristic Measure of Fragility and Tail Risks: Application to Stress Testing Abstract Pdf

A better approach, according to Taleb and his IMF co-authors Elie Canetti, Tidiane Kinda, Elena Loukoianova, and Christian Schmeider, is to measure the difference between outcomes arising from different scenarios instead of focusing on the estimates of potential losses themselves.

According to Taleb, this is the real way to measure the “fragility” of a bank or a country in the event of a negative economic shock. Because point estimates are so prone to errors from faulty model assumptions, measuring the distance between them to detect how quickly losses pile up as the economic shock gets larger becomes a vastly more reliable measure of risk.

In other words, it’s not the size of the losses themselves that is important. Instead, it’s the rate of change of potential losses as the economic situation deteriorates that determines how fragile a bank is, by Taleb’s standards.

via Nassim Taleb Explains In An IMF Paper Why The Fed’s And ECB’s Bank Stress Tests Are Bogus – Business Insider.

You can respect a human…

You can respect a human, you should never admire him.

It hit me thinking of this commoditized-metricized-modernistic sports-fan worshiping business why
1) two of the three Semitic religions Judaism & Sunni Islam have a thing against human representation & consider that perfection and purity is not the business of humans &, critically, we humans should not be burdened by such aims, so better work on being a “good” human;
2) the third Catholic & Orthodox Christianity & some branches of Islam retained virtue from ancient thinking & limit hero-worship to dead saints and martyrs;

via You can respect a… | Facebook.

I am trying to divest this page…

I am trying to divest this page from anyone whos is a “fan” of an aberration & monstrosity called a competitive athlete, or anyone seeking a commoditized metric called “accomplishment”.

You should limit the “fan” business to the non-publicity-prone people around you who exhibit outstanding ethical behavior and have made sacrifices for the benefit of others –far from the aberration of the competitive athlete and the cancer-marketing-self-promotional phenomenon. As I said, I am entitled to comment on the cancer-marketing business.Finally, we need to clean this page from the lowly class of “fans” and autograph-stamp collectors; I am only interested here in those interested in the advancement of ideas and the development a certain way of viewing the world.

via I am trying to… | Facebook.