Friday, December 30, 2016

How to run a succesfull experiment?

How to run a succesfull experiment?

First, take two or three risky strategies.
Next expose them to a series of shocks.
Then wait several years to see which strategy survives.

Wednesday, December 7, 2016

Why does the banker get the bailout and the merchant goes bankrupt?

Why does the banker get the bailout and the merchant goes bankrupt?

Because systemic risk is not a justice-based possiblitity and the amount of debt determines on who the sky will fall (the bigger the debt the less chance to fall).