Not only did they fail to protect their users from a bad outcome, they made such an outcome far more likely. That is a topic for another panel (or post). Many folks see IG as an easy way to make quick cash. In April 2012, Instagram raised $50 million from venture capitalists with a $500 million valuation. In short, the risk models added to systemic risk.So what’s the solution? And the hits keep on coming: we've done part one -- now meet more intriguing new faces catching vibes in LA. To the contrary, the risk guys told us it was a low-risk business.If you think about it for a moment, the risk models aren’t really indicators of risk at all; in fact, they often act as reverse indicators. Movements in financial markets don’t follow the normal (or Gaussian) distribution, and any risk-management strategy that relies on such an assumption is destined to greatly underestimate the real risks of any given trading strategy.Anyway, here is roughly what I would have said had I made it to L.A. Adhering to the old maxim that no audience can be expected to soak up more than three points per panelist, I was going to make the following points. This means that the platform is an entirely different animal than it was a couple of years … )I won’t spend long on the model failures, which have been well documented in my own book, “How Markets Fail,” and in many others. As I said, that’s worthwhile information to have at hand, especially for a trading desk. Instagram took the world by surprise. Nadal's Deal With Global Car Brand Extended Despite 27.8% Drop In Sales This Year Tennis legend Rafael Nadal has penned a five-year renewal with Kia Motors, despite the automobile company recording a massive slump sales due to COVID-19. In the risk-management community, the common response to the fat-tails critique is to say: come on, we never believed returns were normally distributed: we all knew they were leptokurtic. The average price of a sponsored post is $300. Consumer Reports reveals the findings from this year's batch of new lawn mowers. Well, let’s go back to history and think about the leading indicators of financial crises and what they are. Just like many policy makers, the Wall Street C.E.O.s had effectively joined a cult of economic modelers, and whatever the modelers told them they believed.Taleb is basically right, but the failure wasn’t as simple as it appears. [27] Joshua Kushner was the second largest investor in Instagram's Series B fundraising round, leading his investment firm, Thrive Capital, to double its money after the sale to Facebook. From fact to fiction, these films offer surprising stories only PBS can tell.Your report has been successfully submitted. We saw plenty of new top performers, and have great news for folks who like electric. In effect, if not intention, the model converts “disaster myopia”—the human tendency to discount previous highly negative experiences—into a dollar figure, thereby giving it a ring of authenticity. Now, the increasing popularity of Value-at-Risk models wasn’t the only factor driving these developments, but it was one of them, surely. In reality, the Instagram algorithm is what decides which posts people see every time they open their feed.