A tweet on tail risks
2 tail risks:
The best, that which perceived as very risky turns out to be very safe
The worst, that which perceived as very safe turns out to be very risky
The risk weighted capital requirements for banks, kills the best, and puts the worst one on steroids
http://subprimeregulations.blogspot.com/2018/08/risk-weighted-capital-requirements-for.html
PS. A tweet thread on rational and irrational expectations
PS. A tweet thread on rational and irrational expectations
Posts
