Michael Lewis and the idiots

Ezra Klein: “There is not one single piece of the system that worked the way it was supposed to.” I disagree with the quotation – every single piece of the system worked the way it was supposed to, but the system was destined to fail. I also disagree with the sentiment that everyone involved was an idiot. Almost everyone in Lewis’ story was at least fairly smart, but the incentive structures were such that smart people were paid well to lead everyone to disaster. This suggests that we should be reading Austin, not Summers.