Saturday, November 17, 2007

Why are Americans so naive?

There was a common enabling factor for both 9-11 crisis and CDO mess. Both were the result of typical American naivete. Prior to 9-11, security checks in US airports were cursory and trusting of passenger genuineness. An open door tempts a saint and 9-11 was waiting to happen.

Similarly, due diligence of mortgage customers was almost absent before the subprime crisis surfaced. Such an irrational naivete is difficult to explain.

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