Friday, February 6, 2009

"We've made a fetish of markets."

A second clip from bigthink featuring Michael Lewis of Liar's Poker fame (among other things). The first one is here.

In this clip he focuses on the financial markets and the mistakes that led us to this downturn. It is a longer piece, but has some real gems throughout.

A few notable quotes:

1) The SEC is very good at hounding people who have done trivial things.
2) We actually were deluded into thinking that nothing could really go wrong.
3) The money that was being invested had no capacity to understand what it was being invested in.
4) There is a natural limit to the amount of complexity the markets can assimilate.

If you like Michael Lewis, don't miss his excellent article on the melt-down found on

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