2. No socialisation of losses and privatisation of gains. Whatever may need to be bailed out should be nationalised; whatever does not need a bail-out should be free, small and risk-bearing. We have managed to combine the worst of capitalism and socialism. In France in the 1980s, the socialists took over the banks. In the US in the 2000s, the banks took over the government. This is surreal.
4. Do not let someone making an "incentive" bonus manage a nuclear plant -- or your financial risks.. Odds are he would cut every corner on safety to show "profits" while claiming to be "conservative". Bonuses do not accommodate the hidden risks of blow-ups. It is the asymmetry of the bonus system that got us here. No incentives without disincentives: capitalism is about rewards and punishments, not just rewards.
Predictably, [Taleb]'s a bit more focused on avoiding such occurrences than society might want to be. So though his list is a good agenda for becoming "Black Swan-proof," we also need a conversation on exactly how Black Swan-proof we want to be.
Protecting against all risks, especially catastrophic risks like Black Swan risks, would be incredibly inefficient and expensive
That would be a terrible idea.
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