satt comments on Open thread, Aug. 17 - Aug. 23, 2015 - Less Wrong Discussion
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Comments (106)
I'm basically claiming that I know better than the market, so I'm surprised you're the first person to call me on it. Rigorous definitions are complicated by the fact that the 2007-8 financial crisis took about a year to bottom out - even if the next crash started right now, it (probably) wouldn't bottom out by the end of the year. I'd say around 50% prob of a crash of similar impact as 2008 starting by the end of the year. Perhaps I should get a predictionbook account and register my unusual predictions.
Yes, predictions about nationalism/communism are simple extrapolations. I wish to emphasise that I don't think this is necessary a disaster - the SNP are not your stereotypical nationalists, and are not a huge source of concern IMO, and Japan is an ethno-nationalist state which seems to be functioning perfectly fine.
I do find it surprising/worrying that the frontrunner for the leader of the opposition in the UK is a socialist talking about encouraging growth by printing money, leaving NATO, funding homoeopathy, legislating against toy soldiers, etc., and is mostly rejected by his own party for being too left-wing.
To be fair, I didn't look at the markets either. I asked my gut for a reference class forecast ("How often might I expect this kind of crisis to come along in general...?") while trying to remember my impressions of what economic commentators have said about potential bubbles & such. (I used this sort of tactic to guess rough, first-cut probability estimates in the Good Judgment Project, where I did OK.)
Yeah, that was part of the reason my probability was as low as it was. Actually, reflecting on it a tiny bit more rigorously, I'll nudge it down further to maybe 3%, because I originally rounded "before the end of the year" to "half a year" in my head, but the rest of 2015 is more like a third of a year.
With a looser prediction window like "beginning by the end of 2015, but hitting bottom before the end of 2016", I'd raise my "maybe 3%" to "maybe 12%".
I had to Google that one!
Edit to add: regardless of the probability disagreement, I did upvote you for elaborating.