Taleb on “exponential complexity”, “hidden risks” and their consequences

Taleb is talking about finance, but the same kinds of drivers are at work in the humanitarian system. The consequence?

In this clip from the Charlie Rose Show, “Black Swan” author Nassim Nicholas Taleb explains how our lack of awareness of exponential complexity hid the hidden risks within our financial system, leading to unexpected collapse.

We had an accumulation of hidden risks in the system, coupled with an increase in complexity. Never in the history of the world have we had a situation with so much complexity, coupled with so much ignorance… The world is much more complex and interconnected than we know, and the people who are supposed to know, don’t know.

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