Robin Hanson pulls together various threads and concludes,

So it seems the US has a finance and policy elite defined by college ties and related social connections, an elite with a strong sense that only people in their circle can really be trusted, and that their institutions must be saved at all cost at taxpayer expense if needed. These beliefs might be correct, but it is disturbing to realize they might well persist and be reinforced even if they were incorrect, especially if such elites thought that insiders who trust outsiders too much also cannot be trusted.

The book I am currently reading (for the nth time) is David Halberstam’s The Best and the Brightest. Halberstam’s theme is that a finance and policy elite defined by college ties and related social connections, an elite with a strong sense that only people in their circle can really be trusted, held all of the key foreign policy positions and took us blundering into the Vietnam war. I am re-reading the book as a guide to policy making during the financial crisis.