Jim Letourneau's Blog

Investing, Technology, Travel, Geology, Music, Golf. I think that covers it.

I Told You So

I've watched the Academy Award winning Inside Job film a couple of times. I couldn't tell you who's leading the NHL in scoring but I knew the names of most of the people interviewed in the movie. Do you ever watch a game where your favorite player doesn't get nearly enough ice time? In the case of Inside Job, I thought that Frank Partnoy didn't get enough interview time.

I read his book, F.I.A.S.C.O., shortly after it came out and it certainly foreshadowed much of what happened in the financial sector. Partnoy excused himself from the trough early, documented his experience,  and then moved on to academic life. That may account for his lower profile.

He's published an Afterword to F.I.A.S.C.O. which has several quote worthy passages, including:

Our culture has become so infused with the gambling instinct that we afford investors only that bill of rights given a slot machine player: the right to pull the handle, the right to pick a different machine, the right to leave the casino, but not the right to a fair game.

Could a $100,000-a-year SEC investigator ever catch a $2,000,000-a-year derivatives salesman?

...and the capper...

I have just one last thing to add, for anyone who doubted my claim that obscure financial instruments called derivatives could cause the collapse of the global financial system. I told you so.

I suggest you read FIASCO Afterword.pdf