Nassim Taleb and The Black Swan

There is an interesting article at Bloomberg.com on Nassim Taleb, author of Fooled by Randomness and The Black Swan. Highlights include:

"stress tests are inherently risky because they ignore rare but potentially devastating events ...",

"... we're all blind to rare events and routinely fool ourselves into believing we can predict risks and rewards."

"We're not interested in the small frequent payouts. We want the infrequent huge payouts.''

The article was an interesting read, as was Fooled by Randomness. The Black Swan is next on the reading list.