{"id":29,"date":"2009-07-11T21:34:59","date_gmt":"2009-07-12T05:34:59","guid":{"rendered":"tag:google.com,2005:reader\/item\/a2ff42f03e96cb3d"},"modified":"2010-04-12T16:12:09","modified_gmt":"2010-04-12T23:12:09","slug":"taleb-outsells-greenspan-as-black-swan-gives-worst-turbulence-bloomberg-com","status":"publish","type":"post","link":"https:\/\/www.blackswanreport.com\/blog\/2009\/07\/taleb-outsells-greenspan-as-black-swan-gives-worst-turbulence-bloomberg-com\/","title":{"rendered":"Taleb Outsells Greenspan as Black Swan Gives Worst Turbulence &#8211; Bloomberg.com"},"content":{"rendered":"<blockquote>\n<p>Shared by  Woolwit<\/p>\n<p>This is an older article but has some great biographic info and also explains (to me anyway, a complete non-trader) what Taleb means when he says out-of-the-money.<\/p>\n<p>On a freezing day in March 2007,<br \/> Nassim Taleb walked into a conference room at Morgan Stanley&#8217;s<br \/> Manhattan offices on 47th Street and Broadway to address a group<br \/> of the firm&#8217;s risk managers. His message: Your models don&#8217;t<br \/> work.<\/p>\n<p>`He Cleaned Up&#8217;<\/p>\n<p>On Oct. 19, 1987, he was sitting at a row of desks on First Boston&#8217;s trading floor at Park Avenue Plaza in Manhattan when his dream came true. The Dow Jones Industrial Average plummeted 22.6 percent in the biggest one-day drop in U.S. stock market history. The crash caused Eurodollar futures to surge after the U.S. Federal Reserve pumped liquidity into the banking system, lowering interbank borrowing rates. Taleb&#8217;s positions exploded once again.<\/p>\n<p>&#8220;We all knew that he did well, that he cleaned up on that and made $35 million to $40 million,&#8221; Diakolios says of the sum the bank made on Taleb&#8217;s positions. &#8220;The equities guys below us thought, &#8216;Why did some guy upstairs make all this money on a day when everybody got killed?&#8221;<\/p>\n<p>&#8216;  The payday for Taleb was big. Without divulging the amount, he says 97 percent of the money he&#8217;s ever made was on Black Monday in 1987.  `<\/p>\n<p>`There are concentrated pockets of luck,&#8221; he says.<\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Shared by  Woolwit <\/p>\n<p>This is an older article but has some great biographic info and also explains (to me anyway, a complete non-trader) what Taleb means when he says out-of-the-money.<br \/>\nOn a freezing day in March 2007,<br \/>\nNassim Taleb walked into a confere&#8230;<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[111],"tags":[],"class_list":["post-29","post","type-post","status-publish","format-standard","hentry","category-start-here"],"_links":{"self":[{"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/posts\/29","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/comments?post=29"}],"version-history":[{"count":6,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/posts\/29\/revisions"}],"predecessor-version":[{"id":899,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/posts\/29\/revisions\/899"}],"wp:attachment":[{"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/media?parent=29"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/categories?post=29"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/tags?post=29"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}