Did Wall St. Bonuses Cause the Financial Crisis?
An affirmative answer to those questions is the underlying thesis of Nassim Taleb's op-ed in the New York Times today. Taleb, the financier famous for authoring "The Black Swan," proposes ending bonuses for all systemically important financial institutions: the Wall Street banks, some insurance companies, the biggest hedge funds.
Taleb is probably one of the smartest people I've ever encountered.
I've learned more from Taleb and his books than almost any other living thinker. Most people misunderstand the lessons of The Black Swan which is a great frustration to him. He wrote a book that tried to explain that we need to make ourselves less vulnerable to unpredictable shocks -- and people instead went around trying to predict the next shock to the system. They missed the point about unpredictability, about the limits of our knowledge of future events, altogether.
More from CNBC
Wall Street Unimpressed With Republican Candidates
Home Prices Still Falling, and Not Just Foreclosures
Happy Holidays in Store for Videogame Makers
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV