Nassim Taleb – Skin in the Game

In a nutshell (272 pages), this is probably Taleb’s best known work. Skin in the game for Taleb means owning the downside when reaching for upside. Examples of bankers shirking responsibility while making all the gains only to be bailed out by taxpayers is a modern example of an age-old problem. This book offers new and timeless remedies and makes the case why having skin in the game.

What I got out of it

I don’t think that anyone believes that it’s ethical for someone to gamble the money of others. Especially if those other people don’t know that their money is being gambled. What I really got out of this book is a better way of thinking about fairness not just on ethical terms but as a necessity for a functional society.

What was difficult

There is, at times, a feeling of understanding the problem, but not seeing how things will change. Of course, it’s impossible to know what will happen in the future but this book is excellent for broadening a viewpoint, but not so clear on what the reader can do about it.

Recommendation

As with all of Taleb’s books I strongly recommend any one read this book. Even more so if you are in any way responsible for policy making of any sort.