THE PILLARS OF CAPITALISM: A LETTER TO THE ECONOMIST (November 3, 2009)

Your review of Andrew Ross Sorkin’s Too Big to Fail: The Inside Story of How Wall Street and Washington Fought to Save the Financial Systemand Themselves (New York: Viking, 2009) is a real joy to read (“Book of Revelations,” October 31, 2009). Drawing on interviews with a few hundred people who participated directly in the events surrounding the collapse of Lehman Brothers, the book offers a rare view of the pinnacle of the capitalist system. When the going gets tough, the movers and shakers pluck numbers from the air, resort to creative thinking, make up the rules as they go, and worse. Some act decisively but foolishly, others dither wisely. Most have no idea what is going on, let alone what to do about it. Wherever one turns, hubris and ineptitude reign. Topped by the imposing bulk of the Treasury, the Federal Reserve, and the Securities and Exchange Commission, the entire system rests on thin air. The pillars of capitalism are but a figment of our imagination. Sorkin’s book should be a must in introductory economics courses, so as to discourage the fainthearted as early as possible.