"Investors who lost money in the financial crisis should sue the Swedish Central Bank for awarding the Nobel Prize to economists whose theories brought down the global economy," says Nassim Nicholas Taleb, author of the bestselling book "The Black Swan".
Referring to 1990 Nobel laureates, Merton Miller and William Sharpe on their work on portfolio theory and asset-pricing models, Taleb says, "I'm not blaming them for coming up with the idea, but I'm blaming the Nobel for giving them legitimacy. No one would have taken Markowitz seriously without the Nobel stamp."
The author also said that people are using Sharpe's theory that vastly underestimates the risks they're taking and overexposes them to equities.
The author further declared that the Nobel Prize in Economics has conferred legitimacy on risk models that caused investors's losses and taxpayer-funded bailouts.
Taleb threatened to sue them if no one else will but did not say where or on what basis a lawsuit could be brought.