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The dog in the night time: Difference between revisions
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→Disbelief-suspenders
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Theories: | Theories: | ||
====Disbelief-suspenders==== | ====Disbelief-suspenders==== | ||
*'''Over-reliance on “other adults”''': We imagine regulators/rating agencies are better resourced, more watchful, more powerful, more talented and less human than they are. | *'''Over-reliance on “other adults”''': We imagine regulators/rating agencies are better resourced, more watchful, more powerful, more talented and less human than they are. Examples: | ||
** | **SEC on Madoff. | ||
*'''Reliance on agents and intermediaries''': Reliance on trusted intermediaries as experts to place your funds so hold themselves out as experts and imply that they are taking responsibility for your interests but | **FDA on Theranos. | ||
**Moody’s on the GFC | |||
*'''[[Agency problem - Risk Article|Reliance on agents and intermediaries]]''': Reliance on trusted intermediaries as experts to place your funds so hold themselves out as experts and imply that they are taking responsibility for your interests but | |||
:(a) expressly (but discreetly) disclaim that responsibility and | :(a) expressly (but discreetly) disclaim that responsibility and | ||
:(b) are incentivised in conflict to your interests (by retrocession commission from end investment and upfront commission from client) | :(b) are incentivised in conflict to your interests (by retrocession commission from end investment and upfront commission from client) | ||
*'''Compliance with | *'''Compliance with [[ad hoc control - Risk Article|ad hoc control mechanisms]]''': presence of ad hoc proxy measures with which the plan was formally compliant: credit ratings, certifications, audit reports Sharpe ratios, "official" measurements which substitute for and *represent* actual intractable data with a simplified measurement or derivative, often provided by a third party not itself in possession of the intractable data. | ||
*'''The velvet rope''': the hoi polloi not welcome here. Celebrities only. See also “I don't want your business oh go on then” | *'''The velvet rope''': the hoi polloi not welcome here. Celebrities only. See also “I don't want your business oh go on then” | ||
*'''Affinity fraud''': He's one of us. | *'''Affinity fraud''': He's one of us. | ||