risks in over simplifying the complex world

“The market movements in the eighteen months after September 11, 2001, were far smaller than the ones that we faced in the eighteen months prior – but somehow in the minds of the investors they were more volatile. The discussions in the media of ‘terrorist threats’ magnified the effect of these market movements in people’s heads. This is one of the reasons that journalism may be the greatest plague we face today – as the world becomes more and more complicated and our minds are trained for more and more simplification

from Fooled by Randomness by Nassim Nicholas Taleb

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