" Let’s take a look at what blinded Greenspan: Greenspan knew that markets were “efficient” because the efficient market hypothesis is the foundational pillar underlying modern finance theory. Markets can’t be efficient if there is control fraud, so there must not be any. Wait, there are control frauds! Tens of thousands of them. Then control fraud must not really be harmful, or markets would not be efficient. Control fraud, therefore, must not be immoral. As crime boss Emilio Barzini put it in The Godfather, “It’s just business.” As delusional and immoral as this “logic” chain is, many elite economists believe it. This warped perspective has spawned policies so perverse that they turn the world of finance into the optimal environment for criminals. The upshot is that most of our elite financial leaders and professionals have thrown integrity out the window, and we end up with recurrent, intensifying financial crises, de facto immunity for our most elite criminals, and the rise of crony capitalism."
Posted on: Thu, 06 Jun 2013 13:41:24 +0000