Indeed, though we are not going to eliminate cyclically correlated changes in attitudes of human beings, I am impressed by the effect that facts, historical relationships, and quantification can have on reducing such swings.
Financial mis-selling and a focus on shortterm profitability were rewarded, securitisation encouraged opaque and dishonest conduct, and there was no such thing as a realistic assessment of credit risk. There’s another example I could mention to show that the market is incapable of regulating itself and that values, it would appear, still haven’t made an appearance in some quarters of the banking industry.