Quotes About Risk

Diversity here has to do with the degree of uncertainty inherent in the process.

The way to make society more equal is by forcing (through skin in the game) the rich to be subjected to the risk of exiting from the 1 percent.

The gains from size are visible but the risks are hidden

Luckily, I had some skin in the game for my opinions

And when you take risks, insults by half-men (small men, those who don't risk anything) are similar to barks by nonhuman animals: you can't feel insulted by a dog.

This example not only gives us an idea of harm done by those who intervene, but, worse, it illustrates the lack of awareness of the need to look for a break-even point between benefits and harm.

The central point: had Stiglitz been a businessman with his own money on the line, he would have blown up, terminated. Or had he been in nature, his genes would have been made extinct—so people with such misunderstanding of probability would eventually disappear from our DNA. What I found nauseating was the government hiring one of his coauthors.

what you see is likely to be less Black Swannish than what you do not see.

Uma das contingências da vida: não existe estabilidade sem volatilidade.

just as we tend to underestimate the role of luck in life in general, we tend to overestimate it in games of chance.

We have always been crazy but weren't skilled enough to destroy the world. Now we can.

blindness to fragility, selective memory, and absence of skin in the game.

the total losses for the ten banks would be close to nothing.

If you want to become antifragile, put yourself in the situation "loves mistakes"—to the right of "hates mistakes"—by making these numerous and small in harm. We will call this process and approach the "barbell" strategy.

This reasoning shows that sophistication can, at some level, cause degradation, what economists call "negative utility.

The worst punishment was his state of helplessness in the face of risks and unfairness.

Just as those who live by the sword die by the sword, those who earn their living taking risks will lose their livelihood taking risks.

Remember that for an event to be a Black Swan, it does not just have to be rare, or just wild; it has to be unexpected, has to lie outside our tunnel of possibilities. You must be a sucker for it.

while the bulk of their risks came from outside their models.

Not understanding that doing nothing can be much more preferable to doing something potentially harmful.

without penalty to themselves from having been wrong in the first paper

and lack of vigilance on the part of the bank.

People go to business school to learn how to do well while ensuring their survival—but what the economy, as a collective, wants them to do is to not survive, rather to take a lot, a lot of imprudent risks themselves and be blinded by the odds. Their respective industries improve from failure to failure

The problem is primarily size, and the fragility that comes from size.