Black Swan author and general chronicler of unpredictability Nassim Nicholas Taleb is now saying that investors should sue the Nobel Prize Panel for giving economics awards to the people he thinks helped destroyed the financial system.
“I want to make the Nobel accountable,” Taleb told Bloomberg today. His case: the conveyors of economics’ most high honor have bestowed unwarranted legitimacy on the charlatans who created risk models that ultimately proved disastrous to investors.
Did Taleb name names? Oh yes he did. Get in the ring, Harry Markowitz, Merton Miller and William Sharpe — Taleb has some shots to throw your way:
“People are using Sharpe theory that vastly underestimates the risks they’re taking and overexposes them to equities,” Taleb said. “I’m not blaming them for coming up with the idea, but I’m blaming the Nobel for giving them legitimacy. No one would have taken Markowitz seriously without the Nobel stamp.”
How important is this to Taleb? “If no one else sues them, I will,” he said. Per Bloomberg, he wouldn’t say where or how the force of law could be brought down against the Swedish organization, which also doles out an annual award honoring the pursuit of world peace.