The Breadth of It

I’m amazed by the breadth of the failures of the institutions involved in the stock failures. Corporate executives were supposed to watch the interests of their shareholders. Accountants – well, we all know what they did. The SEC was supposed to be monitoring these companies. Analysts were supposed to be taking a close and careful look at the companies they analyze – not just accept the word of the company but actually look in warehouses to see if the goods are there. Mutual Funds were supposed to manage their holdings and their real value was supposedly in a bear market carefully screening out companies that wouldn’t hold their value. Brokers were supposed to watch out for the interests of their clients instead of putting the assets of retired people into tech stocks with PE ratios of 100 in an obviously overvalued market. The Media was supposed to be keeping an adversarial eye on all of these, informing and warning the public..

And The Democratic Party was supposed to be the protector of working families, opposing the moneyed interests.

As I look at it I can’t think of a single institution that did its job.