No. The consequence of fat tails is that the risk-reward relationship becomes extremely wonky. Assuming that the actors involved were rational, both the BP dis

No. The consequence of fat tails is that the risk-reward relationship becomes extremely wonky. Assuming that the actors involved were rational, both the BP disaster and the housing market crashes could be characterized as the result of a mis-application of the normal distribution to distributions that actually had fat tails. BP management _way_ underestimated the risk of an extremely costly crisis, as did housing speculators.