A costly experiment
I am fascinated by what's happening to Lehman Brothers, Merrill Lynch and AIG. It's like the Titanic sinking. It's like a beautiful facade collapsing because its basis is rotten. It's people taking risks without understanding the fundamentals of the products they were buying into. A machine that should be working smoothly because it is all based on logic and maths - but then, maybe not, because at the end of the day, it was people calling the shots, people looking over important details. Now it is technocrats who have to make really tough choices to minimize the costs. This is like an experiment with real people and real consequances.
I will write more about it soon.