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Nassim Taleb has explained the stupidity of such false assurances and misplaced comfort in his Black Swan Theory, and I will not attempt to footnote his extensive treatise.
FORBES: FINRA Enforcement Loses Dramatic ARS Case
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Deloitte US could also, under this theory, presumably be held liable for false or misleading statements made in ChinaCast 10-Qs, even though typically there is no statement actually signed by an auditor for a 10Q.
FORBES: A Legal Secret Weapon May Help Hold Deloitte US Firm Liable for ChinaCast Fraud
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When the practice of managing up gets confused with promotion of self-interest, brown-nosing, manipulation, the gymnastics of corporate climbing, or other mind games, a good theory rapidly becomes twisted resulting in a false and dangerous reality.
FORBES: My Advice On Managing Up - Don't
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The theory is that that helmeted cyclists are lulled into a false sense of security and therefore take greater risks than their more vulnerable counterparts.
BBC: Cyclist