Hyman Minsky on stability

Stability is unstable.

~ Hyman Minsky

Nassim Taleb on confusing the social science of economics with the physical sciences

It was confidently believed that the scientific successes of the industrial revolution could be carried through into the social sciences, particularly with such movements as Marxism.  Pseudoscience came with a collection of idealistic nerds who tried to create a tailor-made society, the epitome of which is the central planner.  Economics was the most likely candidate for such use of science; you can disguise charlatanism under the weight of equations, and nobody can catch you since there is no such thing as a controlled experiment.

~ Nassim Taleb, Fooled by Randomness, 2nd Edition, p. 108

Nassim Taleb on the illusion of stability of pegged currencies in Southeast Asia in 1997

[W]e are not sure that the world we live in is well charted.  We will see that the judgment derived from the analysis of these past attributes may on occasion mislead you and take you in the opposite direction.  Sometimes market data becomes a simple trap; it shows you the opposite of its nature, simply to get you to invest in the security or mismanage your risks.  Currencies that exhibit the largest historical stability, for example, are the most prone to crashes.  This was bitterly discovered in the summer of 1997 by investors who chose the safety of pegged currencies of Malaysia, Indonesia, and Thailand (they were pegged to the U.S. dollar in a manner to exhibit no volatility, until their sharp, sudden, and brutal devaluations.)

~ Nassim Taleb, Fooled by Randomness, 2nd Edition, p. 102

Buffett says banks properly capitalized, pose no threat to U.S. (2003)

The banks will not get this country in trouble, I guarantee it.  The capital ratios are huge, the excesses on the asset side have been largely cleared out.

~ Warren Buffet, Bloomberg, January 10, 2003

Jamie Dimon on fiscal cliff

We are one decision away from restoring our fiscal and moral authority from around the world.  Let's just do it.

The U.S. economy could grow at a 4 percent rate and monthly job creation could get above 200,000 if
Washington politicians can "grasp a rational fiscal policy" and avoid the "fiscal cliff".

~ Jamie Dimon, CEO JP Morgan, CNBC, December 12, 2012

Warren Buffet endorses Dimon for US Treasury head

I think he'd be terrific.  If we did run into problems in markets, I think he'd actually be the best person you could have in the job.

~ Warren Buffet on Jamie Dimon as head of the US Treasury, November 27, 2012, CNN

Woodrow Wilson on neutrality

Neutrality is a negative word. It does not express what America ought to feel. We are not trying to keep out of trouble; we are trying to preserve the foundations on which peace may be rebuilt.

~ Woodrow Wilson

Woodrow Wilson (1913-1921)
1938