One of the themes in the discussion is that current trends in the financial industry are counterproductive (from the public view point, certainly not from the view point of people in the industry - they are rather happy). The topic of this paper is dangerous derivatives and not HFT, but both are what Buffet called "geeks baring formulas", and both use the same (rather ugly) trick of hiding all the risk in the distributions tail. I know a few people in the industry, and I know a few people on the academic side of CS/econ. As far as I can tell they are in it for very different reasons.

So, more risk in tail here too ? why is it that I'm not surprised... Thanks for the info.