There's no question that 2010 is the year of Cassandra, Greece's own ignored prophet of doom. As were 2009 and 2008, arguably, but the last few months have seen more and more critiques of excuses and proclamations of ignorance. For the financial crisis in particular, the question of "why didn't anyone see this coming?" is finally being replaced with: "why didn't anyone listen?"
The NYT reported today on some frustrating examples of disregarded warnings, including a shamefully under-reported story of a financial analyst who spent 8 years jumping up and down in front of the SEC, trying to open their eyes to Madoff's Ponzi scheme:
"Harry Markopolos, a Boston financial analyst, has been out promoting his new book, “No One Would Listen.” It is an account of the eight years he spent trying to persuade the Securities and Exchange Commission that Bernard Madoff was running a multibillion-dollar Ponzi scheme. Mr. Markopolos recounts his tireless efforts to wave red flags in front of government watchdogs. In the spring of 2000, Mr. Markopolos says he tried to explain to a senior S.E.C. official why Mr. Madoff’s numbers did not add up, but “it very quickly became clear he didn’t understand a single word I said after hello.” In the end, perhaps $65 billion disappeared, much of it belonging to charities and retirees."
Speaking of Ponzi schemes, here's something I caught last night on CBS - financial expert Janet Tavakoli, who forewarned about the Ponzi-like credit crisis and is now taking on Goldman Sachs. Check out the video linked below, it's well worth it.
Tavakoli on Goldman Sachs Fraud
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