Sunday, March 15, 2009

The trouble with Kool-Aid...

...is that commentators may also partake.

Put less cryptically, the point to which I am slowly getting is that laypeople rely on journalists and purportedly (hopefully) disinterested observers to distill complicated topics into something people understand. After the little spat between The Daily Show and CNBC, what seems clear is that the "experts" reporting on the dense jungle of finance were drinking the same Kool-Aid that traders were. Words of caution and whistle blowers were lost amid the deafening roar of the hedge-fund managers raking in cash.

Unless one has a degree in Finance or is just a genius of sorts, many or most of the issues involved in the sub-prime crisis, housing bubble, credit crunch, etc are hard to understand at best and completely unintelligible at worst. How many average Americans knew what "commercial paper" was before the crash? So, we rely on what we're told by the "experts". Well, the experts were drinking the Kool-Aid this time, and the people bought into it, just like always.

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