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Nassim Taleb: "The Fed's Business Is Price Instability"

Taleb on what he believes the Fed should be doing instead: "It’s not a Fed problem, it’s a deficit problem." "People want a free lunch. It reminds me of people who lose money in the market and when I was an option trader, people would call me up and ask for a magic way to make their money back. That’s what the Obama team is doing. Instead of accepting that we have a risk problem, we have lost money, and you don’t double up with future generation’s money either by increasing deficits and or debasing the currency. You have to face the saying that there is no free lunch." “The main problem was risk in the system. You cannot solve a risk problem by risky methods. You have to accept…We’re forcing the Greeks to reduce; ok you spent money you didn’t have; now you’re going to cut down. We're going to have to face the same thing. And you’re going to take pain, it’s painful, but that's life." "The Fed's business should be price stability; unfortunately their business seems to be price instability."

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