Our universe is only about 5% light matter (aka matter we can observe). It’s about 27% dark matter, which we can’t directly observe. The rest—68%—is dark energy, which is even more mysterious. Today seems like a great day to talk about the “dark matter” of risk: the risks you
I liked your analogy to matter, dark matter, etcetera. The topic reminds me of Secretary Rumsfeld during the Iraq War trying to characterize to reporters the fog of war through the use of knowns and unknowns. For me the big takeaway from The Big Short and a number of Michael Lewis' books is that human beings are not good at assessing risk. This is more due to the fundamental nature of how our minds work. Training can help but its just not how we are built. This seems to be the lesson of every asset bubble. Outside of finance it emerges only recently as humankind now pursues making things of inordinate complexity. Whenever that is done, it becomes natural to simplify (dumb down) what can go wrong into manageable bites. I enjoy your writing.
I liked your analogy to matter, dark matter, etcetera. The topic reminds me of Secretary Rumsfeld during the Iraq War trying to characterize to reporters the fog of war through the use of knowns and unknowns. For me the big takeaway from The Big Short and a number of Michael Lewis' books is that human beings are not good at assessing risk. This is more due to the fundamental nature of how our minds work. Training can help but its just not how we are built. This seems to be the lesson of every asset bubble. Outside of finance it emerges only recently as humankind now pursues making things of inordinate complexity. Whenever that is done, it becomes natural to simplify (dumb down) what can go wrong into manageable bites. I enjoy your writing.