Main Lecturing Birds on Flying Lecturing Birds on Flying Pablo Triana , Nassim Nicholas Taleb Praise for Lecturing Birds On Flying "Finally, a book taking a critical look at quantitative finance models, illuminating both their flawed fantasy assumptions as well as the uncritical use of such models on Wall Street, in many cases, leading to billion dollar losses. Pablo Triana knows both the financial industry and the academic community from the inside. A must-read for anyone interested in finance. Espen Gaarder Haug , trader, thinker, and author of Derivatives Models on Models "A thoroughly readable explanation of the problems that have beset the models and quantitative techniques that have underpinned so much of finance in recent years. If only the bankers had heeded this message a few years before, we might not be in such a big mess today. By the time he has finished marshalling his evidence, his call to replace complex equations with something more like common sense sounds like, well, common sense.
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Being that Pablo is not a native english writer it may be that a few of the problems with language should be overlooked; my difficulty is that the tome appears to be written by two different people. At times the arguments are very clear and concise, at others the writer comes off as a child using big words just to impress the adults.
Even if I could forgive the author for failing to be creative with the language, I can not forgive the editor or publisher simply because of how much I paid for this book. Pablo is very passionate about the topic, and the book is very well researched. There are some enlightening stories about well known figures, and a couple of nuggets of insight.
The main point of the argument is repeated more often than needed, and it is not a unique argument. Pablo reaches new lows with tearing apart the status quo of mathematics on wall street and business school education.
At one point he even likens them to the Taliban, which I believe is a bit too far. Finally, some of the arguments that are made in the book do not have credibility in their details. The underlying argument is still valid, but a good deal of the evidence is improperly presented, or just plain incorrect.
Or rather fan-nonfiction. As for what Triana has to offer beyond this, it turns out to be worse than useless. Triana is an honest to goodness Luddite. The edifice of mathematical finance stands on the foundation of neoclassical economic theory. Given all of these sources of error, continuing the engineering analogy, it seems modern finance does a fairly good job Financial theorists, Pablo Triana says, are like ornithologists whose birdbrained formulas cant even come close to approximating the experience of flight.
If you have maintained a regular acquaintance with advances in the financial markets, for example, by reading newspapers, you may already be familiar with Trianas analysis. He A pithy, passionate polemic This is a passionate attack on quantitative financial theory and its influence on business schools and the managers of financial institutions.
He relies heavily on the ideas of Nassim Taleb and Emanuel Derman, who explain that people who have experienced improbable events overestimate the chance that such events will recur, while others underestimate it. In this rambling overview, Triana also refers to some of his own previous analyses. He presents a forceful summary of the problems with mathematical economic models. Lecturing birds on flight.. Or something to that. Taleb calls it the Harvard-Soviet Illusion. I have used this part of the title in my presentations and workshops to stress on why and how theories and instructions based on theories are ineffective when it comes to nature and adaptability and response on ground situations.
How does an actor works naturally in changing scenarios and situations is not driven by theory.. The book tries to stress that markets have their own natural ways and the mathematical theories are well..
Those who have read Taleb can potentially pass off this book. Secondly the book is a boring read unlike Taleb style! It comes across like a college paper trying to eke out a few more sentences to meet the 20 page length requirement Great insights into some of the theoretical shenanigans, and non-grounded mathematics, which led to our recent economic near-collapse.
Lecturing Birds on Flying
Being that Pablo is not a native english writer it may be that a few of the problems with language should be overlooked; my difficulty is that the tome appears to be written by two different people. At times the arguments are very clear and concise, at others the writer comes off as a child using big words just to impress the adults. Even if I could forgive the author for failing to be creative with the language, I can not forgive the editor or publisher simply because of how much I paid for this book. Pablo is very passionate about the topic, and the book is very well researched. There are some enlightening stories about well known figures, and a couple of nuggets of insight.
Lecturing Birds on Flying : Can Mathematical Theories Destroy the Financial Markets?
Finance Flap copy For the past few decades, the financial world has often displayed an unreasonable willingness to believe that "the model is right, the market is wrong," in spite of the fact that these theoretical machinations were largely responsible for the stock market crash of , the LTCM crisis of , the credit crisis of , and many other blow-ups, large and small. Why have both financial insiders traders, risk managers, executives and outsiders academics, journalists, regulators, the public consistently demonstrated a willingness to treat quantifications as gospel? Nassim Taleb first addressed the conflicts between theoretical and real finance in his technical treatise on options, Dynamic Hedging. Now, in Lecturing Birds on Flying, Pablo Triana offers a powerful indictment on the trustworthiness of financial theory, explaining-in jargon-free plain English-how malfunctions in these quantitative machines have wreaked havoc in our real world. Triana first analyzes the fundamental question of whether financial markets can in principle really be solved mathematically.