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I haven’t read through all the Edge question responses yet, but I definitely totally will I promise. But I did read Taleb’s response so allow me to summarize it to save you the trouble and annoyance of doing same. For example if you, like me, started to simultaneously get annoyed and zone out while reading,
The implication is that those tools used in economics that are based on squaring variables (more technically, the Euclidian, or L-2 norm), such as standard deviation, variance, correlation, regression, or value-at-risk, the kind of stuff you find in textbooks, are not valid scientifically (except in some rare cases where the variable is bounded).
Just mentally replace it, and the rest of piece, with:
Not all distributions are Gaussian. I am so insightful.
Nothing is lost.
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