- What is fragile should break early while it is still small. Grow nothing too big to fail.
- No socialisation of losses and privatisation of gains.
- Find the smart people whose hands are clean.
- No incentives without disincentives. Don't incentivize risk where you don't want it.
- Counter-balance complexity with simplicity.
- Do not give children sticks of dynamite, even if they come with a warning . Ban risky financial products
- Only Ponzi schemes should depend on confidence.
- The debt crisis is not a temporary problem, it is a structural one.
- Economic life should be definancialised.
- Make an omelette with the broken eggs. Rebuild the whole system.
Wednesday, April 08, 2009
Principles for a Black Swan-Free World
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