Really interesting talk. He said basically that our entire industry improperly caters risk management to events that aren’t in the tails when in all actuality events in the tails actually happen more than is implied.
Or something like that - IDK, I’m retarded.
EDIT: wait nvm, I’m not putting a pic of me on here - that’s stupid.
Sounds like a neat summary of Taleb’s books
Was about to write the same thing.
same
From my insider’s perspective, risk management at most (well run) banks tends to be conservative at most plausible scenarios. So, they are over prepared for almost all volatility events. However, in a 99.999999% percentile disaster, there’s nothing much you can do. You can’t buy puts for a nuclear bomb blowing up Goldman Sachs.