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Showing posts from January, 2010

Spitzer on the failure of banking regulation

Eliot Spitzer, former governor of New York, illustrates the dramatic failure of bank regulators by giving an extension to the Peter Principle that he calls "Peter principle on steroids": "People are promoted to their point of incompetence. The incompetence creates a crisis. They use the crisis to ask for even more power. So they get a promotion even beyond their point of incompetence!"