While I’m largely sympathetic to Mr. Taleb, I am surprised that he seems to be even more skeptical of models than I am. One can get too wrapped up in empiricism, and it is wholly inefficient to rely only on empirical observations for every decision. At some point, you need to rely on estimations and statistics. His book looks worth a read and I will probably buy it, but a quick look at blurbs in wikipedia indicates that he could be downright anti-scientific. That being said the overreliance on computer models to economics is part and parcel of the problem with the housing bubble. And anyone who despises Ben Bernanke this much is worth listening to. The last two minutes are really good.

Nassim Taleb on Charlie Rose
Tagged on:             

Leave a Reply

Your email address will not be published. Required fields are marked *