Nassim Taleb and Daniel Kahneman: Reflection on a Crisis-In Video

Posted on July 16th, 2009 by admin in Behavioral Finance

There were many credible warnings about the financial crisis and credit market catastrophe. For example:

http://www.amazon.com/Demon-Our-Own-Design-Innovation/dp/0471227277

John Paulson, a hedge fund manager, shorted the bank stock index and made a $3B profit. Robert Shiller warned of the housing bubble about to burst. So the crisis was certainly not a Black Swan Event to these folks. But what about the rest of us? Were we surprised? Were we warned?

This video focuses on the psychological roots of some mental biases and how they can lead us to big mistakes. The video (2009-1-27)  takes 59 min, but in our humble opinion, it’s exceptionally stimulating.

Kahneman researched biases of human decision making and gained so many deep insights he was awarded the Nobel Prize in economics. Taleb popularized the idea of the Black Swan, and endlessly talks about the huge risks many people accept blindly, when they could know better.

Kahneman/Taleb Video Conversation

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