Monthly Archives: January 2013

Chinese minds move away from conservatism toward antifragility – The China Post

What he calls the central Triad of exposures — Fragile, Robustness and Antifragile — has the analogy in the Chinese trinity of Female (Ying), Golden Mean (中庸) and Male (Yang).

The Confucian concept of Golden Mean seeks to avoid extremes and take the safe middle path.

But Taleb’s insight shows us why the Golden Mean gets people into trouble, because by playing safe, the mainstream ignores the uncertainty of Black Swan events that could eventually damage the system as a whole.

Prudence and conservatism through adopting the Golden Mean prevents the practitioner from adopting “antifragile or good high risk-high payoff” strategies that would compensate for the uncertain unknown bad Black Swan events. A Buddhist would immediately recognize the need to build up good deeds to compensate for the bad deeds that may befall oneself.

By not taking risks, Chinese dynasties that adopted Golden Mean strategies became closed societies that eventually imploded when disaster struck. On the other hand, in the run up to the Industrial Revolution, Western societies took large risks with high payoffs, in science, technology and even colonialism.

via Chinese minds move away from conservatism toward antifragility – The China Post.

More Skin in the Game in 2013 by Nassim Nicholas Taleb – Project Syndicate

I tell people what I have in my portfolio, not what I predict; that way, I will be the first to be harmed. It is not ethical to drag people into these exposures without incurring the risk of losses. In my book Antifragile, I tell people what I do, not what they should do, to the great irritation of the literary critics. I do so not for autobiographical reasons, but only because the other approach would not be ethical.

Finally, there are warmongers. To deal with them, the onetime consumer advocate and former US presidential candidate Ralph Nader has proposed that those who vote in favor of war should place themselves or a descendent into military service.

One can only hope that something will be done in 2013 to implement some skin in the game heuristics. A safe and just society demands nothing less.

via More Skin in the Game in 2013 by Nassim Nicholas Taleb – Project Syndicate.

Tim Cohn “Reston Runner”‘s review of Antifragile: Things That Gain from Disorder | Amazon.com

5.0 out of 5 stars Fascinating!, January 3, 2013

By Tim Cohn “Reston Runner”

This review is from: Antifragile: Things That Gain from Disorder (Kindle Edition)

This is a brilliant piece of original work, and, predictably, it seems to infuriate many readers. Why? Mostly, I think, because Taleb’s observations are deadly accurate and he takes a particular delight in ruthlessly pointing out the cluelessness of most academics when it comes to understanding how complicated systems really work — how real systems not only survive adversity but in fact depend on it. Why does any of this matter? Because, whether we like it or not, we exist in a universe of complicated systems — all forms of life, the atmosphere, the oceans, tectonic plates, the solar system — and when we fail to acknowledge this and its implications, we tend to devise “cures” that are worse than the so-called “diseases.” In a grand sense, the future of our society depends on understanding this book’s message; at a smaller level, the book ensures you will have something interesting to talk about at your next cocktail party.

via Amazon.com: Tim Cohn “Reston Runner”‘s review of Antifragile: Things That Gain from Disorder.