The Financial Crisis: The Folly of Action Without Root Cause Analysis
How many people believe the current financial disaster has received a thorough root cause analysis? Do you? Yet we are in the process of spending trillions in an attempt to “fix” it.
Since politics and greed are near the heart of this failure, it is unlikely that the government will ask for real investigation into the causes of the decline of so many financial institutions. Performing a real root cause analysis would reveal too many errors, blunders, broken rules, and perhaps criminal activity. Instead, scape goats will be identified during political which hunts.
Was it the Fed? Political cronyism with appointments at Freddy and Fanny? Stupid accounting rules? Greed at investment banks and hedge funds? Inadequate regulatory oversight? The result of beltway lobbyists and their contributions on the political process?
A thorough root cause analysis could pinpoint the reasons why our systems are failing.
But instead of a thorough root cause analysis, you and I will be stuck with the bill for the failure of others without any guarantee that the real causes are being corrected.
Talk about waste, fraud, and abuse … I think we are witnessing it on a grand scale … and there is very little we can do about it.