Eyes and ears are poor witnesses when the soul is barbarous. Heraclitus
Posted mid-Sunday, as bail-out talks continue.
Pinker complains in The Blank Slate of the increasing emphasis in the 20th century on nurture. This may well have increased our sympathies for others, but has led us to undervalue human nature and therefore not consider moral hazards that tempt it. Our experiences are so variable and their impact so ambiguous, we may be quick to assert effect where none existed – or emphasize it when convenient. Indirectly, we came to devalue that third and most personally consequential component – human agency. We say, “Officer Krupke, I’m down on my knees” and grin, but we aren’t always ironic. Our experience and history, however, should make us more optimistic and also wary: men can be good (and remarkably so) and men are fallible. (Sinners some might say, while the Deists find us prone to errata.) A culture’s use is in restraining us from being our worst and encouraging our best; the more those restraints and rewards are internalized the smoother, more productive, and happier our lives. Our goal is not too many laws but good ones, not many restraints but necessary ones.
The general consensus is that increased subprime lending encouraged by Congress led CEOs to make bad loans. We are selfish, our vision narrowed to our time and our profit: the home buyers may have been naïve but also wanted a free lunch; the CEOs wanted to please Congress the source of their jobs, power & money; Congress wanted to buy votes, increase campaign contributions, and purchase their own houses cheaply. Those least likely to feel the consequences of their follies are in Congress.
Which is a long way around to the point: What the hell were Dodd and Frank doing writing a version of the bailout? Why do they think they should? Why does anyone else listen to them? Isn’t having a dog in that fight exactly the reason for recusals? Is there no moment when we say your history has undermined your authority?