Shared by JohnH

HatTip to Dave Lull

To prevent Black Swans from society, let me summarise two simple rules; one, do not give the manager of a nuclear plant an incentive bonus based on cost cutting; two, the captain goes down with his ship.  The first rule is about the avoidance of some risks and the second rule concerns the elimination of that form of capitalism that we have.  From that we can derive a whole host of heuristics.

If you let the system work itself, the giants will self destroy.  The regulations need to be done the right way.  The regulators in Basle are the ones who help bankers pile up risk.  We need regulations that help the small guy and help the economy to have protection against the risk takers.