yes it is true, plenty of "smart" people can behave very "stupidly"

Adam Levitin asks some important questions in this article
From Credit Slips, questioning how "smart" are the "smart" people ?

posted by Adam Levitin


In relation to the chain of title argument on securitization, I have been repeatedly confronted (often unsolicited) with an argument that there's no way there were massive screw-ups because thousands of top Wall Street legal minds were working on securitization deals. Yes, and there's no way the underwriting was lousy on the mortgages themselves because thousands were being done. I tend to get this argument from people with a large financial stake in ensuring that securitizations don't fail. This is a really bad argument, so let me just debunk it now (and hopefully never hear it again):

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