Nassim Taleb: ‘No one who caused the crisis paid any price’
From The Times:
A year or so after the 2008 crisis, Nassim Taleb, a financial trader turned bestselling author, was called to Washington to talk to a commission that was compiling a report on what went wrong.
Taleb, after all, had predicted the crisis with eerie prescience in his 2007 book The Black Swan, which talked about the underappreciated “tail risks” faced by the global economy.
“They heckled me for about two or three hours on technicalities,” he recalls. “But not a single one of my points was in the report. Bunch of f****** bureaucrats. No wonder people voted for Donald Trump.”
Taleb believes we have learnt nothing from the crisis. “Not only did people not get why it happened,” he says, “but the moral hazard in the system actually increased.”
The problem, in Taleb’s view, is what he calls a “Bob Rubin trade”. In the build-up to the crash, Robert Rubin, a former Treasury secretary under Bill Clinton, spent years advising the investment bank Citigroup, eventually becoming its chairman. After the crash happened, he resigned and walked away having made tens of millions…