Collective Delusion

Here’s the best summary I’ve found on the financial melt-down. Interview with author Michael Lewis, who was fantastic in a book I read years ago called Moneyball – which looked at new trends in baseball scouting metrics. This interview is well worth 15 minutes if you’re interested in really understanding how $2 trillion in “wealth” simply evaporated (hint: it was never there). The parallels to religion are clear.

“Wall Street deludes itself because it’s paid to delude itself. People see what they’re incentivized to see. If you pay someone to not see the truth, they will not see the truth. Wall Street organized itself so that people were paid to see something other than the truth. You have to be very careful how you incentivize people, for they will respond to the incentives.” – Michael Lewis

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