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birdwatcherBloomberg Top News -- Universities must change because they teach mathematical theories, such as the Black-Scholes model of pricing options, that don't express risk properly, Taleb said in a Bloomberg Radio interview.
``Recent events have proved that all risk management was wrong,'' Taleb said. ``We need to do something drastic immediately to stop quantitative risk managers from inflicting more damage.''
Academic teaching resists change because tenured professors aren't forced to adapt and aren't subject to the same ``rigorous standards'' that the market imposes on Wall Street, Taleb said.
``People are learning the wrong thing,'' he said.
``You have a business school establishment that's completely disconnected from what's going on'' because it depends too greatly on equations, Taleb said. ``We should learn to abandon these bogus matters and instead of using a computer we should look at the world with the naked eye.''
``Recent events have proved that all risk management was wrong,'' Taleb said. ``We need to do something drastic immediately to stop quantitative risk managers from inflicting more damage.''
Academic teaching resists change because tenured professors aren't forced to adapt and aren't subject to the same ``rigorous standards'' that the market imposes on Wall Street, Taleb said.
``People are learning the wrong thing,'' he said.
``You have a business school establishment that's completely disconnected from what's going on'' because it depends too greatly on equations, Taleb said. ``We should learn to abandon these bogus matters and instead of using a computer we should look at the world with the naked eye.''
