4 ms·
All the examples you give can be perfectly explained using arguments about rationality.
by hcks 3y ago
All the examples you give can be perfectly explained using arguments about rationality.
- nologic01 3y agoex-post an extraordinary event a lot of people are wise and can "rationalise" how it did happen. the question is whether one can rationalize what can happen before it does. that requires understanding in depth what the system is and how it might behave in extremes open any quantitative finance book older than a few years and it will tell you that interest rates cannot go negative because... blah blah... some cash arbitrage it turns out that arbitrage is not implementable...