Taleb Dodges Question

Long-time readers will know that I’m not much of a fan of Nassim Taleb. Unfortunately, Mr. Taleb has ended his media boycott to bring us his thoughts on Ben Bernanke and QE2.

Taleb says that Bernanke doesn’t understand risk because there’s a chance that QE2 will cause hyperinflation. That’s certainly true, but it’s not an argument against QE; it’s an argument against any Fed easing at any time for any reason. Even by Taleb’s standards, this is a frivolous point. Inflation is currently flat (even Roubini thinks it’s not a problem) and unemployment is miles from the point of accelerating inflation.

I think a lot of students would find Taleb amusing because he tells them that experts are idiots. His commentary, however, never goes beyond this. This clip has a a good example. The interviewer asks Taleb what the Fed should be doing. The truth is that Taleb doesn’t have any answers, only juvenile antics. Watch as he artfully dodges the question.