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Nassim Taleb: The Next Black Swan

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Posted on March 13, 2012

In case you missed Nassim Taleb’s interview on CNBC this morning.

He endorsed Ron Paul and is a bit cryptic in his four points, one of which,  that a sovereign debt crisis is coming to the United States.   Rather than doing the necessary “root canal” to deal with the economy’s structural problems,  the government is giving Novocain in the form of large budget deficits,

You have to start with government budget that is in control.  You start with that.   It’s unconditional.  You don’t gamble with future generations’ money and you don’t gamble with hyperinflation.  You want the government first, like we’re doing with the Greeks. We’re doing it to the Greeks.  We should do it to ourselves.  You start with that.  That’s 90% of the problem.

Click here for full interview.

or (copy and paste) link below.

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Definition of ‘Black Swan’
An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult to predict. This term was popularized by Nassim Nicholas Taleb, a finance professor and former Wall Street trader.

Author of Black Swan (Event Theory) Nassim Taleb Criticizes the Administration and Larry Summers

Uploaded by nydivide on May 19, 2010

May 19, 2010

On May 6, US stock markets opened down and trended down most of the day on worries about the debt crisis in Greece. At 2:42 pm, with the Dow Jones down more than 300 points for the day, the equity market began to fall rapidly, dropping more than 600 points in 5 minutes for an almost 1000 point loss on the day by 2:47 pm. Twenty minutes later, by 3:07 pm, the market had regained most of the 600 point drop.[6]t-On May 6, US stock markets opened down and trended down most of the day on worries about the debt crisis in Greece http://en.wikipedia.org/wiki/2010_Flash_Crash

A Black Swan Event – An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult to predict.

Nassim Taleb states that Larry Summers and the administration have put our economic stability more at risk since the credit crisis has began by adding more debt and leverage to the system.

 

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