Given the above, can there be any doubt that the bankers, regulators and industry insiders knew there was a bubble?
The quote is from a long detailed examination of the “we didn’t know there was a housing bubble” story. This would be depressing if you were so silly as to have faith in regulations and regulators. Regulators and the regulated both have incentives and it shouldn’t take much thought to realize that regulation is fundamentally a fool’s errand. But no one can accuse our political leaders of over thinking, so here we are plunging into a new round of regulations, doubtless with a boat load of new regulators, doomed to repeat the same scenario.
It would be funny if it wasn’t so sad.