More Skin in the Game in 2013:: Nassim Taleb [Project Syndicate]
Wednesday, 13 February, 2013 1 Comment
Without sound foundations the global financial sector are little more than licensed “cowboy builders”!
The ancients understood that the builder always knows more about the risks than the client, and can hide sources of fragility and improve his profitability by cutting corners. The foundation is the best place to hide risk. The builder can also fool the inspector; the person hiding risk has a large informational advantage over the one who has to find it.