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 effective regulation: we imagine regulators 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
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 unannouced plans but of entire operation. Black box operations.
High turnover: Especially when combined with confidentiality. Workplace bullying etc.
Hostility: combative/aggressive demeanour to criticism

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

Does regulation work? - Netting - Diversity