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A comment on The world should think better about catastrophic and existential risks. Parent comment

Re:The world should think better about catastrophic and exis... by repsilat on Tuesday June 30, 2020 @11:28PM (#23697460)
Definitely. Another place the mathematics translates pretty cleanly to is financial leverage.

If you take a loan to expand your business and pull forward profits, or even rent property instead of buying it, you take tail risk but in normal times tend to outcompete.

I think it's an ironclad argument for regulation (and maybe government intervention) in insurance markets, and a good argument in many others -- Even though I'm generally in favour of some leverage.

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Re:The world should think better about catastrophic and exis... by ip26 on Tuesday June 30, 2020 @11:41PM (#23697526)
The right answer may not always be the risk compensated answer. The social gains to be had from ignoring the risk could be worthwhile in the broader picture, even if some groups fail.
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