Vincent Reinhart gets the Lehman collapse precisely right at The American (a Journal of the American Enterprise Institute).
Regular readers know I often disagree with the ideologically pre-determiend conclusions from AEI, but in this case, Reinhart is dead on. “We have inverted a morality tale about individual recklessness” into something entirely different “about collective culpability through inaction.”
This month marks the second anniversary of a colossal failure that has shaped financial officials’ response to the ongoing global crisis, legislators’ attitudes toward reform, and the public’s perception of fairness. The failure is the fundamental misunderstanding of the events surrounding the bankruptcy of Lehman Brothers. We have inverted a morality tale about individual recklessness to become one about collective culpability through inaction.
Lehman failed as it should have failed. That we have ex post made it the fulcrum of the financial crisis misrepresents events in three material ways.” (emphasis added).
I am reminded of the words of the English philosopher Herbert Spencer, who said: “The ultimate result of shielding men from the effects of folly is to ﬁll the world with fools.”
Getting Lehman Profoundly Wrong
Vincent R. Reinhart
The American, September 21, 2010
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.