We then get to more dictation from the Ministry of Truth via Klein:What’s remarkable about the financial crisis isn’t just how many people got it wrong, but how many people who got it wrong had an incentive to get it right. Journalists. Hedge funds. Independent investors. Academics. Regulators. Even traders, many of whom had most of their money tied up in their soon-to-be-worthless firms. “Inside Job” is perhaps strongest in detailing the conflicts of interest that various people had when it came to the financial sector, but the reason those ties were “conflicts” was that they also had substantial reasons — fame, fortune, acclaim, job security, etc. — to get it right.
Huh? He can write this with a straight face? He has the incentives 100% wrong. Asset bubbles are very popular. They look like increased wealth to the community. That’s why regulators are reluctant to intervene. If they do, they make people look less prosperous immediately, and they can’t prove the counterfactual, if they had left things alone, the damage would have been worse. [. . .] Did Klein miss the rise of access journalism? Clearly so.
(Emphasis supplied.) I doubt Ezra is unaware of the dangers of access journalism, but he is incentivized to ignore it at this point. But I am not big on motive-based analysis and critiques. I'd rather read the "reporting" and analysis on its own terms. More . . .
It so happens that I have largely disagreed with Ezra Klein's policy and political analysis for many years now. But I've never felt the need to criticize him personally for what I believe is flawed analysis. My criticisms of him were entirely based on what I felt was his perpetuation of a falsehood -- that his analysis of the health care debate was the "progressive"/Left leaning one. It was not. It was wrong of him to allow folks to pretend it was.
At this point, it seems silly to rely on journalism and analysis for much, either for reliability or perspicacity. Read it all with a grain of salt. The incentives are irrelevant to this I think. People just do not know as much as they pretend to.
Speaking for me only
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