Mirrors Evaporate Your Sense of Judgment

I have never heard a logical explanation of why so-called intelligent Wall Street financial hot-shots could not imagine the possibility of a nationwide collapse in housing prices when the country was (so visibly that practically every citizen could see its potential profitability) riding on the slippery surface of a rapidly inflating housing bubble.

The ability of Wall Street traders to see themselves in their success and their management in their failure would later be echoed, when their firms, which disdained the need for government regulation in good times, insisted on being rescued by government in bad times. Success was individual achievement; failure was a social problem. [Michael Lewis, The Big Short (New York: Norton, 2011), 210.]


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