Tim Cavanaugh of Reason magazine wants to know why all of the folks in Government especially the SEC, the Treasury, other analytical departments could not match the intellectual might of one short seller – Mr. Paolo Pellegrini. He used open source analysis and was able to make a potful money by shorting the real estate market.
The main point of the story is a discussion of Mr. Pellegrini and the failures of Congress. But there is an equally compelling point of regulators not regulating the market or being aware of the problem. If the data existed about the housing bubble why did not regulators step in and mitigate the problem before its impact was felt around the world?