Quote of the Day | 0913
As we saw with banks, Toyota’s problem, the BP oil spill, an economic system with a severe agency problem builds a natural tendency to push and hide risks in the tails, even without help from the economics establishment. Risks keep growing where they can be seen the least; there is a need to break the moral hazard by making everyone accountable both chronologically and statistically.
Hence the principle: The captain goes down with the ship; all captains and all ships: making everyone involved in risk-bearing accountable, no exception, not a single one.
N.N. Taleb, ‘Why Did The Crisis of 2008 Happen?’
Boeklog on Taleb’s The Black Swan.
[x]#7811 fan maandag 13 september 2010 @ 11:31:27
