Charles Hugh Smith describes the similarities between the financial crisis and the gulf oil spill. Hubris, Incompetence, Corruption, and Denial combined to create a disaster.
How many more can we endure?
Link: Of Two Minds
1. The extreme levels of inherent risk in each system were downplayed/misunderstood by those responsible for their management.
2. The unprecedented risk intrinsic to each system was masked by facsimiles of regulation and specialized expertise.
3. The initial warning signs were dismissed, downplayed or ignored.
4. Each system was on the outer edge of human engineering (mechanical and financial) but was treated by regulators and managers as entirely standard.
5. Once the system collapsed, nobody knew how to fix it.
6. As the full extent of the damage became apparent, those responsible sought to mask the true extent of the damage.
7. The mainstream media and elected officials unskeptically accepted prevarications, mis-statements, misinformation and manufactured facades as representations of the truth.
8. As the true extent of the damage, distortion/manipulation and failure of responsible authorities became undeniable, public confidence in government, regulatory agencies and the market irrevocably eroded.