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Lehman: The dog ate my trading records

Bloomberg. Could there be a reason why our elite keeps "losing" records of stuff? Could the reason be -- and this link, from Bill Black, is an absolute must read -- to conceal criminal behavior?

The CEOs really did set themselves up beautifully over the last 30 years, didn't they? They're Underpants Gnomes, but full of win! Black outlines the steps:

Step 1. Take control of large corporations and run them as your personal fiefdoms.

Step 2. Lavishly fund institutions that propagate the idea that fraud is impossible (the "efficient markets" hypothesis).

Step 3. PROFIT!!!!! by committing massive fraud.

Now, the beauty part is step #2, "???" for the underpants gnomes, but not for the CEOs. It's Step #2 that makes mainstream economists, our famously free press, and anybody who ever took Economics 101 seriously literally unable to see even the possibility of fraud, even when evidence is all around them.*

Again, read, mark, and inwardly digest this awesome post by Bill Black -- whose work oddly, or not, Nobelist Paul Krugman still has not mentioned or linked to, not even in his blog, not once. Perhaps because Missouri is a flyover state? -- because Black's post summarizes the nature of "our" political economy better than anything I've seen. Read it, read it, read it.

NOTE * And for pure vitriol, the OFB have nothing, nothing at all on the Austrians. The sacher torte crowd is so invested in Step #2 that their comments start right off with derision; their ability to respond at an analytical level has atrophied entirely.

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nihil obstet's picture
Submitted by nihil obstet on

Documentation and record-keeping require knowledge, attention, time spent on task, and managerial competence. The elites don't do those sorts of things.

At the risk of revealing how far my interests are in the gutter, Iris Mack's description of what Robert Rubin actually does with his time on the job confirms my experience with movers and shakers.

When the elites want to hide stuff, they actively destroy records. But I don't think they were trying to let their subprime victims off the hook by not keeping track of the mortgage deeds. They're just too self-centered to keep good records, so they end up with lost, chaotic, inaccurate ones.