Must watch videos. The first one is a recent interview with Nassim Nicholas Taleb, author of ‘The Black Swan’ and ‘Fooled By Randomness’. The second one is a lengthy video that explains his anti-fragile / anti-fragility concept in a much more detailed way. One problem is that artificially suppressing volatility weakens the system. The main problem though is really simple. In plain English: If you have no skin in the game you profit from the upside of a risky investment. If things go wrong somebody else pays for your bad decisions. As long as this problem is not addressed the whole system will stay fragile. Enjoy the videos.
Update 01/03/13: Added a third video with Taleb from Authors@Google.
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