In a posteriori analysis , some bad-prediction or non-expected outcome would probably be the cause of failure. Following @nntaleb thoughts, it is not about misprediction or defective risk analysis, but about size.
https://t.co/76Kj8k8Jln
Probably the week's article. BlackRock close to getting $10tr AuM. This means a single company is handling same assets than HF + PE & Venture Capital industries. However, one question clearly arises:
1. What if BlackRock falls? Of course, the views on +
the company does not contemplate this option (which is possible indeed, and mistake number 1). Second, we may assume Blackrock as too big to fail. So again, should BlackRock struggle, how much would it cost to fix it? And who would pay for that? (realize the rhetorical question)