12-20-09

12-20-09--If there’s been a consistent narrative to this year and every other in this decade, it’s that most of us, Bernanke included, have been so easily bamboozled. .... As of Friday, the Tiger saga had appeared on 20 consecutive New York Post covers. For The Post, his calamity has become as big a story as 9/11. And the paper may well have it right. We’ve rarely questioned our assumption that 9/11, “the day that changed everything,” was the decade’s defining event. But in retrospect it may not have been. A con like Tiger’s may be more typical of our time than a one-off domestic terrorist attack, however devastating.
Indeed, if we go back to late 2001, the most revealing news story may have been unfolding not in New York but Houston — the site of the Enron scandal. That energy company convinced financial titans, the press and countless investors that it was a business deity. It did so even though very few of its worshipers knew what its business was. Enron is the template for the decade of successful ruses that followed, Tiger’s included. ... The most lethal example, of course, were the two illusions marketed to us on the way to Iraq — that Saddam Hussein had weapons of mass destruction and some link to Al Qaeda. That history has since been rewritten by Bush alumni, Democratic politicians who supported the Iraq invasion and some of the news media that purveyed the White House fictions (especially the television press, which rarely owned up to its failure as print journalists have). ...You’d think after Enron’s collapse that financial leaders and government overseers would question the contents of “exotic” investments that could not be explained in plain English. But only a few years after Enron’s very public and extensively dissected crimes, the same bankers, federal regulatory agencies and securities-rating companies were giving toxic “assets” a pass. ...But after a decade in which two true national catastrophes, a wasteful war and a near-ruinous financial collapse, were both in part byproducts of the ease with which our leaders bamboozled us, we can’t so easily move on. –Frank Rich, NYT WK 7