Many of You Will be Sued

I am about to prove the "nonneutrality of representation". It means that risk measures CAUSE a disproportionate increase in risk taking on the part of the unsuspecting user.

The consequence is that many risk quants (& authors of VAR books, consultants, & members of the International Association of Financial Engineers promoting modern finance) will be sued (by the victims) for providing faulty Value-at-Risk measures because it led to an INCREASE in risks.

Even if you tell the person"you need to supplement this method with that method such as stress testing", it is not sufficient --he will rely on the measure. All I needed to show is the illusion of safety.

Yes, many of you (providers of risk measures) will be sued by the innocent people who lost their savings --like tobacco companies who were sued by the innocent smokers.

You will be held accountable. I will make sure it happens. I said in 1996 ( & 1997 in my debate with that ... Jorion) that I will be on the witness stand -and I will be.

I will be.

PS- This is called malpractice. I got interested in iatrogenics a few years ago.