A recent Steve Sailer post on the financial meltdown underlines just how corrupt and blind the whole system is. It also underlines how daft we are to trust in our ‘betters’. He shows that there’s little incentive for outsiders to point out big shots' fraud and misinformation, and such whisle blowers face a lot of potential risk.
Steve takes time out to salute Harry Markopolous, who first brought Bernie Madoff's Ponzi scheme to the Securities and Exchange Commission's awareness in 2000 and then wrote them a 19 page letter in 2005 listing 29 Red Flags.
Of course, the SEC didn't do anything substantitive about it (other than one SEC official marrying into the Madoff family). Markopolous tried to talk the SEC into taking action by warning them that if they didn't move fast, Elliot Spitzer would beat them to it. (But now we know that the Spitzer family real estate firm, like so many New York real estate businesses, had money with Madoff.)
One thing that stands out is that Markopolous wasn't alone. He was just the guy who kept complaining about it. Markopolous's 2005 letter cites numerous experts, either by name or by position, who figured out this was a fraud. But Markopolous was one of the few to do anything about it.
Lesson is - don't trust the experts ever again.