A public service announcement about grad school (via Brad, I think).

". . . as long as managers are paid a percentage for managing other people's money, they will compete with each other based on the returns they appear to generate. The pressure to create out-sized returns will eventually force them to invent the latest complex scheme which will have the same effect: eventually the investors lose it all. Complex ( Read more... )

Nobody expects the Lebanese Inquisition! Part of me wants to join Nassim Taleb in screaming from the rooftops that it should be a felony to use Value at Risk when managing other people's money, and that everyone promoting such snake oil ought to be publicly disgraced. Another part of me then snidely remarks that if we're going to do that every time ( Read more... )

As the marginal cost of transmitting information tends toward zero, the overhead associated with processing it tends toward infinity.