Michael Lewis on 60 Minutes: "Wall Street is able to delude itself because it's paid to delude itself.

Two-part special on CBS's 60 minutes:

Michael Lewis:  "The incentives for people on Wall Street got so screwed up, that the people who worked there became blinded to their own long term interests. And because the short term interests were so overpowering. And so they behaved in ways that were antithetical to their own long term interests."

"I'm afraid that our culture will come to the conclusion, 'cause it's always the easy conclusion, that everybody was just a bunch of criminals. I think the story is much more interesting than that. I think it's a story of mass delusion," Lewis said.

"From the time I was at Salomon Brothers, it was incredible to me that the firm could advise customers what to buy and sell," he added. "At the same time, they are betting on the things that they're trying to sell their customers. So I might call you up and say, 'Wow, these subprime mortgage loans, they look really, really good. This pile over here, you oughta invest in that pile. ' And meanwhile, the traders behind me are betting against it.'"



"Wall Street is able to delude itself because it's paid to delude itself.

Part 1

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Part 2


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Tim Geithner January 2010:

"The steps the government took to rescue AIG were motivated solely by

 what we believed to be in the best interests of the American people".