January 20, 2010
As a general rule, diagnosis should precede treatment. But last week, we saw in both the legislative and executive branches examples of the "treatment before diagnosis" mentality. In Congress, the first hearings of the congressionally created Financial Crisis Inquiry Commission was held under the chairmanship of Phil Angelides, former California treasurer and former chairman of the California Democratic Party. The commission was "mandated" by law with reporting back to Congress by December 2010, "with a series of conclusions about what occurred, and recommendations as to how to avoid future market breakdowns. (Disclosure: I provide professional advice to some financial institutions.)