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Tag Archives: Fannie Mae

Friends I wonder if this is clear…

Friends I wonder if this is clear TECHNICAL APPENDIX: HOW TO DETECT WHO WILL GO BUSTNext, let us examine a method of detection of fragility. We can illustrate it with the story of the giant government sponsored lending firm called Fannie Mae, a corporation that collapsed, leaving the United States Taxpayer with hundreds of billions […]

EconTalk -Taleb on the Financial Crisis

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.