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Current Events => Economics => Topic started by: Chris_ on October 10, 2010, 01:04:27 PM

Title: Author Says Investors Should Sue Nobel for Crisis
Post by: Chris_ on October 10, 2010, 01:04:27 PM

Quote

`Black Swan' Author Says Investors Should Sue Nobel for Crisis

Nassim Nicholas Taleb, author of “The Black Swan,” said investors who lost money in the financial crisis should sue the Swedish Central Bank for awarding the Nobel Prize to economists whose theories he said brought down the global economy.

“I want to make the Nobel accountable,” Taleb said today in an interview in London. “Citizens should sue if they lost their job or business owing to the breakdown in the financial system.”

Taleb said that the Nobel Prize for Economics has conferred legitimacy on risk models that caused investors’ losses and taxpayer-funded bailouts. Sweden’s central bank will announce the winner of this year’s award on Oct. 11.

“People are using Sharpe theory that vastly underestimates the risks they’re taking and overexposes them to equities,” Taleb said. “I’m not blaming them for coming up with the idea, but I’m blaming the Nobel for giving them legitimacy. No one would have taken Markowitz seriously without the Nobel stamp.”

Bloomberg (http://www.bloomberg.com/news/2010-10-08/taleb-says-crisis-makes-nobel-panel-liable-for-legitimizing-economists.html)

Can we sue them for giving one to Al Gore and Barack Obama?  They must be handing those things out like candy.