The dog in the night time

Podcast idea - look at unusual anomalies in the markets and ask why they persist

what are the red-flags that an out and out fraud, pyramid, ponzi scheme is going on? are there some consistent themes?

Theories:

Over-reliance on regulators: we imagine regulators/rating agencies are better resourced, more powerful and more talented than they are. - assumed the SEC was doing its job
Credibility: Connection to well-regarded community pillars - If George Schultz is on the board the company must be legit, right? We imagine community pillars have done their due diligence on our behalf?
Interconnectedness of red-flags
Belief in paradigm shift as part of the story: We’ve banished risk. The internet has changed economics forever
Micromanager: Single person unusually able to influence/control the narrative
Cult of personality: single svengali
Secrecy: Insistence on confidentiality not just of unannounced plans but of entire operation. Black box operations.
High turnover: Especially when combined with confidentiality. Workplace bullying etc.
Hostility: combative/aggressive demeanour to criticism
No errors: no screw ups, no bad launches: everything is fine. Real companies have setbacks. Especially if defended with hostility - e.g., you threaten to ruin EVERYTHING with your questions.

With all the checks and balances in financial regulation, how did:

Does regulation work? - Netting - Diversity

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