Thursday, October 2, 2014
An Obvious Paradox Occurred with Oil Prices
"A century ago, financial markets priced in a very low probability that a major conflict would occur, blissfully ignoring the risks that led to the first world war until late in the summer of 1914," Roubini said.
"Back then, markets were poor at correctly pricing low-probability, high-impact tail risks. They still are."
Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics