The Trouble with History

By Paul Kedrosky · Monday, January 25, 2010 ·

Good quote from Taleb:

It is particularly shocking that people do what is called “stress tests” by taking the worst possible past deviation as an anchor event to project the worst possible future deviation, not thinking that they would have failed to account for such deviation had they used the same method on the day before that past  anchor event.  [Emphasis mine]