Taleb: “Obama’s Attempts to Fight the Financial Crisis with More Cash is like Treating a Bad Tooth with Novocain Instead of a Root Canal”

In the quote of the day, Nassim Nicholas Taleb told CNBC:

The Obama administration’s attempts to fight the financial crisis with more cash is like treating a bad tooth with Novocain instead of a root canal…

Do not delay a root canal. Don’t do piecemeal solutions to a problem that is fundamental.

Taleb’s previous one-liners include:

What is fragile should break early while it is still small.

No socialisation of losses and privatisation of gains.

People who were driving a school bus blindfolded (and crashed it) should never be given a new bus.

Do not let someone making an “incentive” bonus manage a nuclear plant – or your financial risks.

Counter-balance complexity with simplicity.

Do not give children sticks of dynamite, even if they come with a warning .

Only Ponzi schemes should depend on confidence. Governments should never need to “restore confidence”.

Do not give an addict more drugs if he has withdrawal pains.

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