From Jerry Pournelle (What? You haven’t read Lucifer’s Hammer yet?) on how just about everybody making bets in the financial markets were wrong. This “everybody” includes very highly educated, extraordinarily well paid, respected, etc. etc., people.
One of my favorite lines, “Given incorrect models to work with, the computers continued to forecast profits right up to the crash.”
Another “As to what can be done, it may not matter. That is, it’s important what we do, but the chance that it will be done sanely and rationally is very small.” Of course, what we do will be pronounced as “the” thing to do. After all, the eventual plan, whatever it might be, will be made by experts.
Pournelle’s worry, as should be ours, is that the only thing that will happen is the creation of yet another big-government bureaucracy.
“Pournelle’s Iron Law of Bureaucracy states that in any bureaucratic organization there will be two kinds of people: those who work to further the actual goals of the organization, and those who work for the organization itself. Examples in education would be teachers who work and sacrifice to teach children, vs. union representative who work to protect any teacher including the most incompetent. The Iron Law states that in all cases, the second type of person will always gain control of the organization, and will always write the rules under which the organization functions.”
Ah, government bureaucracy. Is there anything experts at the government can’t fix? I know I can’t wait for the EPA to start regulating the “pollutant” CO2. They ought to figure a way to tie mortgages to global warming. Then things will really get better.
Yes, a disconnected rant today. All I know is that I have been prudent and actually have saved to buy a house, did not try to purchase anything I couldn’t afford, and now I will be asked to pay for the mistakes of all the experts and fools who brought this on.
In any government bailout, the first thing I would require is that any executive of the firms that are being helped would lose all of their personal assets. Every penny. Then I’d sue the traders and stockholders to recover more. I’d do all that before I started taking money from innocent civilians.
As it is, the executives from Fannie Mae, Lehman Brothers, etc., will all walk away very rich men. They will be rewarded.
And the government will continue to bloat.