"Efficient systems have limited ability to deal with system-wide economic shocks. Those shocks are coming with increased frequency. They're caused by global pandemics, yes, but also by climate change, by financial crises, by political crises. If we want to be secure against these crises and more, we need to add inefficiency back into our systems.I … Continue reading Market Inefficiency vs. Other Values
Tag: resilience
Tail-End Consequences
"...there are three distinct sides of risk:* The odds you will get hit.* The average consequences of getting hit.* The tail-end consequences of getting hit. ...tail-end consequences – the low-probability, high-impact events – are all that matter.In investing, the average consequences of risk make up most of the daily news headlines. But the tail-end consequences … Continue reading Tail-End Consequences
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