{"id":8109,"date":"2015-10-26T23:44:19","date_gmt":"2015-10-27T06:44:19","guid":{"rendered":"http:\/\/www.blackswanreport.com\/blog\/?p=8109"},"modified":"2015-10-26T23:44:49","modified_gmt":"2015-10-27T06:44:49","slug":"nassim-nicholas-taleb-the-danger-of-debt-the-sunday-times-post","status":"publish","type":"post","link":"https:\/\/www.blackswanreport.com\/blog\/2015\/10\/nassim-nicholas-taleb-the-danger-of-debt-the-sunday-times-post\/","title":{"rendered":"Nassim Nicholas Taleb: The danger of debt | The Sunday Times Post"},"content":{"rendered":"

\"taleb-pic1-684x336\"<\/a><\/p>\n

But in this instance, the government came in indiscriminately to bail out everyone. So let\u2019s zoom out seven years later \u2013 is it seven years already? \u2013 and look at what\u2019s happened.<\/p>\n

Well, what has happened is nothing, nothing, nothing, nothing new. We did not learn. We have had some kind of pseudo-recovery, mostly fuelled by an increase of debt. So the pool of debt has increased, and at low interest rates from the Fed, which don\u2019t seem to be effective.<\/p>\n

Now you have to realise that debt is only to be judged when you pay it back. Life should not be a Ponzi scheme which collapses when you have to pay it back. Is there an element of Ponzi in debt? Well, there\u2019s some element that\u2019s not Ponzi in debt \u2013 that\u2019s small \u2013 and there\u2019s a Ponzi element. So we didn\u2019t learn much from the crisis. If we look at the narrative in 2009, it was healthier then.<\/p>\n

But the efforts of governments in making things cosmetically look good now have been bad.What we didn\u2019t learn from the crisis is that debt and leverage is bad, and we didn\u2019t learn that economists are full of baloney. I have busted them mathematically. Between 2009 and now, I\u2019ve published 45 technical papers, and I have ten more under review by journals. I have found arguments of theirs that are not valid empirically, but no one seems to care.<\/p><\/blockquote>\n

Source: Nassim Nicholas Taleb: The danger of debt<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

But in this instance, the government came in indiscriminately to bail out everyone. So let\u2019s zoom out seven years later \u2013 is it seven years already? \u2013 and look at what\u2019s happened. Well, what has happened is nothing, nothing, nothing, nothing new. We did not learn. We have had some kind of pseudo-recovery, mostly fuelled […]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[168],"class_list":["post-8109","post","type-post","status-publish","format-standard","hentry","category-contributors","tag-debt"],"_links":{"self":[{"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/posts\/8109","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=8109"}],"version-history":[{"count":2,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/posts\/8109\/revisions"}],"predecessor-version":[{"id":8112,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/posts\/8109\/revisions\/8112"}],"wp:attachment":[{"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/media?parent=8109"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/categories?post=8109"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/tags?post=8109"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}