After Citi's and Merril's CEOs, now it's Bear Stearn's CEO turn to be forced out. When you look at that, the size of the losses (even if you assume that they were "just" the tens on Billions already recognized), the disruption created and the fact that so many signals were highlighted and warnings given beforehand by many, from Buffett to the mass newspapers, if you're committed to make a living in the capital markets, it should be inevitable to ask: how can it be? How can all those highly educated, ultra-highly paid, brilliant guys make such a mess that seemed so obvious?
My answer is: hubris, greed and the wrong incentives systems. As they say: if you want to find the answer, follow the money. The guys that created the mess might have suffered at the end, but received tons of money in the process and thought they were not only smart, but smarter then the other guys. At the end, they ended up looking, and being, morons.
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