Comment by rchaud

Capitalism makes more sense if it's thought about purely in terms of individual self interest as supposed to something that leads to an efficient market on aggregate.

The CEOs making big calls across the economy have already negotiated golden parachutes in the event of their failure.

The financiers and lawyers getting a chunk of each bond deal they close have every incentive to raise more than what's actually needed. Investment funds flush with ZIRP dollars have every incentive to plow it back into investments to show that "the money is at work".