AnandG

Taleb vs Merton, Cont.

I think one of the central point for Taleb is the fact that business, which is conducted in real world, must not, rely too much on theory even including those of so called (and disputed) noble winners; particularly ones that originate from such pseudo-science as economics. And I think I fully agree with him. Unfortunately most business managers have absolutely no "Business Experience"; only "Management Experience" and some good academic qualification which off-course teaches only theory.

Having seen socialism run havoc in my own country India, I believe he is justified in being irritated because of the magnitude of problem this is causing. I think for quite some time I am a bit surprised to note that most western Banks and other big companies have very similar working styles as did the organizations in failed socialist states. In both cases the management had no stake of its own and were simply following "what was taught" to be right justified by some accepted standards. That the standard itself is so deeply flawed is never a bother to them because they may not even understand it. This weak structure on which stands so many of our big comapanies and banks needs to collapse. It is no good for us to prop this up for the moment for a subsequent and much worse problem later on.

That Taleb is angry is therefore good and well be.