,*APT] #c 
,AN>*Y "7 ,*AOS 

,PEOPLE 3 

,AU?OR 3 ,C>NE ,ROSS 

,TEXT 3 

#c4 ,AN>*Y "7 ,*AOS 

,:5 ! TR\BLE FIR/ IGNIT$ 9 ,M>* #b#d1 ,I WAS 9 ,G5EVA1 AT A CONF]5CE DESIGN$--IRONICALLY1 IT TURN$ \T--TO PROMOTE RECONCILIATION BETWE5 ,KOSOVO'S ,ALBANIANS & ,S]BS4 ,AN ADVIS] TO ,KOSOVO'S PRIME M9I/]1 A FRI5D1 DREW ME ASIDE3 0,?REE ,ALBANIAN *ILDR5 HAVE BE5 KILL$10 %E :ISP]$ CONSPIRATORIALLY1 0BY A ,S]B40 ,) DELIB]ATE PORT5T1 %E ADD$1 0,!RE WILL BE TR\BLE40 ,CURI\SLY1 %E SEEM$ EXCIT$ BY ! NEWS4 ,IT WAS AS IF %E WAS RELIEV$ ?AT1 AT LA/1 SOME?+ WAS HAPP5+4 

,NEXT DAY1 BACK 9 ,PRI/9A1 ,KOSOVO'S CAPITAL :]E ,I !N LIV$1 IT WAS CLE> ?AT H] PREMONITION WAS CORRECT4.<#f#c.>  ,T5SION WAS PALPABLE 9 ?AT CITY'S POLLUT$ AIR1 /RA9+ PEOPLE'S FACES4 ,! RUMORS W]E WIDESPREAD1 AMPLIFI$ BY IRRESPONSIBLE J\RNALI/S3 ,A ,S]B HAD DRIV5 ?REE *ILDR5 TO !IR DEA?S1 ! REPORT]S CLAIM$1 BY DR[N+4.<#a#f#e.> ,NOT ONLY ?AT1 BUT !Y HAD DI$ ?AT HORRIBLE DEA? 9 ! ,IB>1 ! V]Y RIV] DIVID+ ,S]B & ,ALBANIAN HALVES ( ,MITROVICA1 ,KOSOVO'S MO/ DIVID$ CITY4 

,?AT AFT]NOON1 AT ,U,N HEADQU>T]S :]E ,I WORK$1 WE RECEIV$ REPORTS ( CR[DS GA!R+ 9 T[NS & VILLAGES ACROSS ! PROV9CE4 ,SUDD5LY1 ! SECURITY GU>DS ANN\NC$ OV] ! (FICE L\DSPEAK]S ?AT A L>GE GR\P ( Y\NG M5 WAS APPROA*+ ! HEADQU>T]S4 ,SOON1 !IR *ANT+ 0,U-,C-,K6 ,U-,C-,K6 ,U-,C-,K60--R\<LY1 ,OOH-,*AY-,KAH--REV]B]AT$ >\ND ! BUILD+1 L\D & AGGRESSIVE4 0,U,C,K0 IS ! ABBREVIATION = ! ,KOSOVO ,LIB]ATION ,>MY1 ! ,KOSOVO-,ALBANIAN GU]RILLAS :O RESI/$ ,SLOBODAN ,MILOSEVI'S REPRESSION1 9CLUD+ DUR+ ! #aiii W> ?AT L$ TO ! )DRAWAL ( ,YUGOSLAV =CES4 

,)\T W>N+1 ! L\DSPEAK]S ANN\NC$ ?AT ! BUILD+ WAS IMM$IATELY TO BE EVACUAT$4 ,BUT !RE WAS NO 9=MATION ON H[ ! EVACUATION %\LD PROCE$ OR :]E ! ,U,N /AFF W\LD GO4 ,!RE WAS A SUDD5 & ANXI\S S5SE ( PANIC4 ,PEOPLE BEGAN TO RUN UP & D[N CORRIDORS4 ,MOBILE PHONES /OPP$ WORK+--IT WAS LAT] DISCOV]$ ?AT ! RIOTS HAD OV]LOAD$ ! NETWORKS1 P>TLY BECAUSE SOME HAD US$ !IR PHONES TO ORGANIZE ! RIOTS4 ,= SOME REASON1 ! ELEVATORS /OPP$ FUNCTION+ TOO4 ,SOME BEGAN TO WEEP1 P]HAPS ) FE>4 

,I WAS ) MY WIFE1 :O HAD COME TO MY (FICE = ITS GREAT] SECURITY4 ,MY ,ALBANIAN ASSI/ANT1 ,BESNIK1 TOOK *>GE & U%]$ US D[N ! FIRE ESCAPE & 9TO A C>4 ,WE DROVE \T ( ! COMP\ND & BACK TO \R H\SE4 ,ON ! /REETS1 GR\PS ( Y\NG PEOPLE W]E GA!R+4 ,MANY W]E *ILDR54 ,!Y LOOK$ EXCIT$ & AGITAT$4 ,?AT NI<T1 ! GR\PS M]G$ 9TO MOBS4 

,I HAD AGRE$ ?AT EV5+ TO TAKE P>T 9 A TELEVISION DISCUSSION ) POLITICAL LEAD]S AT ! MA9 TELEVISION /ATION 9 ,PRI/9A4 ,AS WE SET \T DRIV+ TO ! /UDIO1 NE> \R H\SE A L>GE MASS ( PEOPLE BLOCK$ ! /REETS4 ,IT WAS D>K & ,I C\LD NOT TELL !IR NUMB]4 ,! MASS SWELL$ & %IFT$2 IT HAD A %APE & 9T5T BEYOND ITS 9DIVIDUAL COMPON5TS4 ,!RE WAS %\T+ & ! BANGS ( :AT ,I ?\<T AT ! TIME W]E FIRECRACK]S4 ,I LAT] REALIZ$ IT WAS GUNFIRE4 ,!RE W]E NO POLICE 9 SI<T4 

,! TELEVISION DEBATE WAS UGLY4 ,ALONG ) AN ,AM]ICAN DIPLOMAT1 ,I >GU$ ?AT ! RIOTS MU/ /OP IMM$IATELY4 ,P>5TS %\LD TELL !IR *ILDR5 TO GO HOME4 ,BUT ! POLITICAL LEAD]S FROM ,KOSOVO'S ,ALBANIAN MAJORITY DID NOT AGREE4 ,ACCORD+ TO !M1 ! TR\BLE WAS ! ,U,N'S FAULT4 ,9 !IR V]SION1 ! RIOTS HAD BE5 TRIGG]$ BY ! ,U,N'S DECISION TO ALL[ ,S]B PROTE/]S FROM A VILLAGE NE>BY ,PRI/9A TO BLOCK ONE ( ! MA9 ROADS TO ! S\?4 

,! ,KOSOVO-,ALBANIAN LEAD]S >GU$ ?AT ! ANG] ON ! /REETS WAS LEGITIMATE PROTE/ AT ! MANY 9JU/ICES ,KOSOV>S HAD SUFF]$1 PA/ & PRES5T4 ,FROM ! T5OR & AGGRESSION ( ! DEBATE1 IT WAS CLE> ?AT SOME ( ! LEAD]S S5S$ A REVOLUTION>Y MOM5T :]E ! ,U,N1 ! DE FACTO P[] 9 ,KOSOVO1 MI<T BE OV]?R[N4 ,!Y GRASP$ ! TAIL ( ! TIG]4 ,BY ! 5D ( ! PROGRAM1 MY BACK WAS 9 PA9FUL SPASM FROM ! T5SION GRIPP+ ME4 ,I RETURN$ HOME ?R\< A CITY SMOLD]+ ) VIOL5CE4 

,BACK AT HOME ) SOME ,ALBANIAN FRI5DS1 WE SAT LI/5+ TO ! GUNFIRE & OCCASIONAL EXPLOSIONS4 ,A R$ GL[ APPE>$ AT \R W9D[4 ,WE LOOK$ \T TO SEE SP>KS & FLAMES SPURT+ 9TO ! AIR NE>BY4 ,WE REALIZ$ IT WAS ! ,S]BIAN *UR* AT ! TOP ( \R /REET1 AFLAME4 ,!RE WAS AN AWFUL S\ND3 A BELL R++ 9CESSANTLY4 

,AFT] A :ILE1 :5 ?+S SEEM$ CALM]1 MY FRI5D ,>DI SUGGE/$ WE GO \T TO SEE :AT WAS GO+ ON4 ,WE WALK$ UP \R /REET TO ! *UR*4 ,IT WAS ABLAZE LIKE A SUMM] BONFIRE1 ITS /EEPLE A COLUMN ( FIRE4 ,ON TOP1 ! *UR* BELL RANG ) A DESP]ATE RHY?M4 ,! HEAT WAS SOMEH[ MAK+ IT R+4 ,=TUNATELY1 !RE WAS NO ONE /ILL 9SIDE ! BLAZ+ BUILD+4 ,AT LA/ ! BELL /OPP$4 ,SCORES ( Y\NG M5 SURR\ND$ ! *UR*4 ,!IR WORK DONE1 MANY W]E SITT+1 GAZ+ AT ! FIRE1 SMOK+ & *ATT+4 ,SOMEONE WAS SELL+ CIG>ETTES4 

,WE WALK$ AWAY4 ,>DI1 A ,KOSOVO-,ALBANIAN1 W\LD NOT LOOK AT ME4 ,HE WAS BESIDE HIMSELF ) ANG] & %AME4 ,SP5T CASES ( PLA/IC BULLETS & RIFLE C>TRIDGES CRUN*$ UND] \R FEET4 ,! ,U,N RIOT POLICE HAD CONFRONT$ ! MOB H]E4 ,BUT !Y HAD BE5 OV]:ELM$ & RETREAT$1 LEAV+ ! *UR* TO ITS FATE4 ,ALL ACROSS ,KOSOVO1 ! =CES ( LAW & ORD]--! ,U,N & LOCAL POLICE & ,N,A,T,O PEACEKEEP]S--HAD LO/ CONTROL4 ,9 ONE T[N1 A CONT+5T ( ,G]MAN SOLDI]S HAD REMA9$ 9 B>RACKS :ILE A MOB ( ?\S&S ROAM$ ! T[N = H\RS1 MOV+ FROM DI/RICT TO DI/RICT1 PICK+ \T ,S]B *UR*ES1 H\SES & ,U,N (FICES1 RANSACK+ BUILD+S & PUTT+ !M TO ! TOR*4 ,:5 WE LAT] VISIT$ ! T[N1 WE SAW AT ITS C5T] A BLACK5$ HILLSIDE1 /UDD$ ) ! %ELLS ( BURNT-\T H\SES1 AS IF A =E/ FIRE HAD SWEPT ?R\< IT4 

,! NEXT DAY1 ! VIOL5CE CONT9U$4 ,!RE W]E REPORTS ( BUSSES TRANSPORT+ RIOT]S >\ND ! PROV9CE TO ATTACK DIFF]5T ,S]B 5CLAVES4 ,9 S\!RN ,KOSOVO1 A L>GE MOB WAS PREV5T$ FROM BESIEG+ A ,S]B ,OR?ODOX MONA/]Y BY ! 9T]V5TION ( A LOCAL ,ALBANIAN =M] ,K,L,A GU]RILLA LEAD] 7HE WAS LAT] TO BECOME ,KOSOVO'S PRIME M9I/]74 ,9 ! DIVID$ T[N ( ,MITROVICA1 :]E ! ,ALBANIAN *ILDR5 HAD DR[N$1 ,N,A,T,O TROOPS %OT & KILL$ SEV]AL ,ALBANIANS TRY+ TO CROSS ! RIV] TO ATTACK ,S]BS 9 ! NOR!RN P>T ( ! CITY4 ,RIOTS W5T ON >\ND ! C\NTRY 9TO ! NI<T4 ,EV]Y ,U,N (FICE 9 ! T]RITORY WAS ATTACK$1 MORE ?AN A HUNDR$ FIFTY ,U,N VEHICLES W]E DE/ROY$4 ,AT LEA/ #ee HOMES & TW5TY-SEV5 ,OR?ODOX *UR*ES & MONA/]IES W]E BURN$1 & MORE ?AN F\R ?\S& PEOPLE--MO/LY ,S]BS1 BUT ALSO ,ROMA & O!R M9ORITY GR\PS--W]E DRIV5 FROM !IR HOMES4.<#f#d.> 

,EV5TUALLY1 ! VIOL5CE DI$ D[N4 ,LOCAL POLITICAL LEAD]S CLAIM$ ?AT !IR CALLS TO 5D ! TURMOIL HAD WORK$1 R>ELY CONFESS+ ?AT !SE 5TREATIES HAD BE5 MADE UND] PRESSURE FROM 9T]NATIONAL (FICIALS4 ,BUT 9 TRU? IT APPE>$ MORE ?AT ! *AOS & VIOL5CE HAD SIMPLY PET]$ \T4 ,ON ! /REETS1 ! RHY?M & ! MOM5TUM ( ! VIOL5CE PULS$ ?R\< ! CITY4 ,BE=E ! VIOL5CE ]UPT$1 Y\ C\LD FEEL IT BUILD UP AS AN URGE NE$+ EXPRESSION4 ,AS ! VIOL5CE PLAY$ \T1 ?AT D>K 5]GY WAS V5TILAT$4 ,AS IT 5D$1 SOMEH[ Y\ C\LD TELL ?AT ! =CE ?AT HAD DRIV5 ! *AOS & RAGE HAD AT LA/ BE5 EXHAU/$4 

,IT IS COMMONLY HELD ?AT SOCIETY REQUIRES AU?ORITY 9 ORD] TO 5JOY PEACE & /ABILITY4 ,)\T SU* 9/ITUTIONS--LAW1 ! POLICE1 ! >MY--SOCIETY WILL COLLAPSE 9TO AN>*Y & DISORD]2 ! MANY WILL FALL VICTIM TO ! CRIM9AL FEW4 ,9 CASE WE NE$ REM9D+ ( :AT ?IS MI<T BE LIKE1 MOVIES AB\ND ) DEPICTIONS ( AN>*Y1 EV5 IF (T5 P]PETUAT$ BY ZOMBIE HORDES 7#b#h ,DAYS ,LAT]1 ,I ,AM ,LEG5D7 OR PROVOK$ BY ALI5 9VASION 7,W> ( ! ,WORLDS74 ,EI!R WAY1 ! AN>*Y %[N IS 5T]TA9+LY T]RIFY+4 ,IT SEEMS !RE IS ONLY A FRAGILE VEIL DIVID+ US FROM ! JUNGLE4 ,TELEVISION (F]S CEASELESS TITILLAT+ DEPICTION--BO? REAL & FALSIFI$--( ! CRIM9ALS :O LURK TO DE/ROY US1 BUT = ! ?9 BLUE L9E ( LAW & ORD] TO HOLD !M BACK4 

,BUT 9 !SE ILLU/RATIONS LIES A CLUE4 ,!RE IS SCANT 5T]TA9M5T 9VOLV$ 9 ! REAL & ACTUAL HORRORS ( HUMANITY--! ,HOLOCAU/1 ! ,KHM] ,R\GE'S 0,YE> ,Z]O0 OR ! BUT*]Y ( ,*>LES ,MANSON4 ,IF AN>*Y W]E SO CLOSE1 & SO AWFUL1 WE W\LDN'T F9D ITS ,HOLLYWOOD DEPICTION 5T]TA9+2 9/EAD1 WE W\LD F9D IT HORRIBLY FRI<T5+1 UNWAT*ABLE4 

,ONE CRITICISM ( AN>*ISM AS A POLITICAL /RATEGY IS SO UBIQUIT\S ?AT IT M]ELY REQUIRES A RE%AP+ ( ! WORD3 AN>*ISM "7 AN>*Y4 ,)\T A SUP]/RUCTURE ( 9/ITUTIONS TO MA9TA9 ORD]1 IT IS CLAIM$1 DISORD] & *AOS WILL SURELY RESULT--,HOBBES'S 0W> ( ALL AGA9/ ALL40 

,?IS IS 9DE$ A FRI<T5+ PROSPECT ?AT FEW D>E CONTEMPLATE4 ,:5 DISA/] /RIKES1 LIKE AN E>?QUAKE 9 ,HAITI OR A HURRICANE 9 ,NEW ,ORLEANS1 IT IS NEV] LONG BE=E COMM5TATORS1 SAFE 9 !IR TELEVISION /UDIOS1 ISSUE DIRE W>N+ ( SOCIAL DISORD] & BREAKD[N1 AS IF ?IS IS MORE FRI<T5+ ?AN ! ORIG9AL NATURAL DISA/]4 ,9 PO/-,KATR9A ,NEW ,ORLEANS1 REPORTS ( C>JACK+S1 RAPES & MURD]S FLOOD$ ! NEWS4 ,?\S&S ( LAW 5=CEM5T AG5TS W]E DEPLOY$ FROM O!R /ATES AS ,L\ISIANA'S GOV]NOR W>N$1 0,!Y HAVE ,M#a#fS & >E LOCK$ & LOAD$4 ,!SE TROOPS KN[ H[ TO %OOT & KILL & ,I EXPECT !Y WILL40 ,POLICE 9 ONE SUBURB NEI<BOR+ ! FLOOD$ CITY W]E SO AL>M$ AT ! PROSPECT ( LOOT]S & O!R MALCONT5TS ?AT !Y BLOCK$ ! BRIDGE FROM ! CITY1 PREV5T+ ! HUNGRY & DESP]ATE FROM GETT+ HELP4 ,O!RS COLD-BLOOD$LY %OT FLEE+ REFUGEES4 

,AS ! ESSAYI/ ,F>E$ ,ZAK>IA HAS NOT$1 ! F$]AL GOV]NM5T'S FA/E/ & MO/ EFFICI5T RESPONSE TO ,HURRICANE ,KATR9A WAS ! CREATION ( A ,KAFKAESQUE1 ,GUANTANAMO-LIKE PRISON FACILITY 9 :I* TWELVE HUNDR$ ,AM]ICAN CITIZ5S W]E SUMM>ILY DETA9$ & D5I$ ANY ( !IR CON/ITUTIONAL RI<TS = MON?S4.<#f#e.>  ,LAT] ACC\NTS1 SU* AS ,DAVE ,EGG]S'S ,ZEIT\N1 TOLD /ORIES IGNOR$ AT ! TIME1 LIKE ?AT ( ,ABDULRAHMAN ,ZEIT\N1 :O AFT] ! HURRICANE PADDL$ >\ND ! FLOOD$ CITY 9 A CANOE (F]+ HELP1 F]RY+ NEI<BORS TO HI<] GR\ND & C>+ = AB&ON$ PETS1 ONLY TO BE >RE/$ BY ,NATIONAL ,GU>DSM5 & HELD 9COMMUNICADO = SEV]AL WEEKS )\T *>GE & )\T M$ICAL ATT5TION ALONG ) O!R ,>AB-,AM]ICAN COMPANIONS4 

,BUT AS ,REBECCA ,SOLNIT HAS WRITT51 DISA/]S 9 FACT (T5 PRODUCE ! OPPOSITE ( DISORD] 9 HUMAN SOCIETY3 9/EAD ( VIOL5CE & AN>*Y1 COMMUNITY & SOLID>ITY4.<#f#f.> 

,A REC5T LETT] TO ! ,F9ANCIAL ,TIMES MAKES A COMMON CLAIM3 ?AT CIVILIZATION IS FUNDAM5TALLY FRAGILE & REQUIRES GOV]NM5T TO PROTECT IT4 ,! CORRESPOND5T CITES ! EXAMPLE ( ! >RIVAL ( ! MUT9E]S FROM ! ,B\NTY ON ! ISOLAT$ ,PACIFIC ISL& ( ,PITCAIRN3 

,:5 ! N9E ,B\NTY MUT9E]S & #ag ,TAHITIAN M5 & WOM5 >RIV$ !RE 9 #a<i IT WAS AS CLOSE TO ! ,G>D5 ( ,$5 AS ANY:]E 9 ! REAL WORLD3 G5]\SLY 5D[$ ) WAT]1 SUN%9E & F]TILE SOILS1 & UN9HABIT$ BY ANYONE ELSE4 ,! P]FECT TE/ ( ,HOBBES V]SUS ,R\SSEAU4 ,9 ! EV5T1 ,HOBBES WON4 ,! ,BRITI% SAILORS F\<T AMONG !MSELVES & TRI$ TO SUBJUGATE ! ,TAHITIANS4 ,! ,TAHITIANS RESI/$ & F\<T AMONG !MSELVES4 

,BY #a#h1 #aa YE>S LAT]1 ONLY ONE ( ! MUT9E]S1 N9E ,TAHITIAN WOM51 & MANY *ILDR5 W]E LEFT1 MO/ ( ! O!RS HAV+ DI$ UNNATURAL DEA?S4 ,! SURVIV+ MUT9E] CREAT$ POLITICAL ORD] BY E/ABLI%+ NOT JU/ AN AUTOCRACY BUT A !OCRACY1 ) HIMSELF AS ! L9K BETWE5 ,GOD & MAN40.<#f#g.> 

,! WRIT] CONCLUDES--QUITE REASONABLY1 GIV5 ! EPISODE HE (F]S AS AN EXAMPLE--BY EMPHASIZ+ 0! IMPORTANCE ( CONT9U$ EF=TS TO SU/A9 GOV]NANCE ORGANIZATIONS ?AT BR+ TOGE!R ! SPECIFIC 9T]E/S ?AT C\NT MO/ 9 ! DEF9ITION ( A COMMON 7NATIONAL1 REGIONAL1 GLOBAL7 9T]E/1 9 ORD] ?AT1 ?R\< REPEAT$ 9T]ACTION1 CONV]G5T 9T]E/S WILL PREVAIL OV] DIV]G5T ONES40 

,! WRIT]'S CONCLUSION IS 5TIRELY CORRECT4 ,UN=TUNATELY1 H[EV]1 IT IS NOT CLE> ?AT CONTEMPOR>Y POLITICAL 9/ITUTIONS1 :E!R NATIONAL OR 9T]NATIONAL1 DO 9 FACT SUCCESSFULLY GIVE SUFFICI5T ATT5TION TO ! COMMON 9T]E/S ( HUMANITY4 ,9/EAD1 IT'S 9CREAS+LY EVID5T ?AT !SE 9/ITUTIONS 9/EAD ELEVATE ! 9T]E/S ( ! MO/ P[]FUL 9T]E/ GR\PS OV] COLLECTIVE 9T]E/S1 & NEGLECT LONG-T]M PRIM>Y NE$S1 9CLUD+ ! 5VIRONM5T4 

,ONE CAN ALSO >GUE ?AT ! WOR/ \TRAGES 9 HUMAN HI/ORY OCCURR$ NOT 9 ! ABS5CE ( AU?ORITY & GOV]NM5T1 BUT W]E 9/EAD P]PETRAT$ BY GOV]NM5TS CLAIM+ TO ACT 9 ! COMMON 9T]E/3 ,NAZI ,G]MANY1 ,/AL9I/ ,SOVIET ,UNION1 ,KHM] ,R\GE ,CAMBODIA--! LI/ IS A V]Y LONG ONE4 ,! CRIM9AL ACTS UND]TAK5 BY !SE GOV]NM5TS W]E P]MITT$ & 9 FACT ORD]$ 9 ! NAME ( ! COLLECTIVE 9T]E/2 ! 9DIVIDUAL P]PETRATORS W]E ?US R5D]$ IMMUNE4 ,DEMOCRATIC GOV]NM5TS >E ALSO FULLY CAPABLE ( T]RIBLE CRIMES1 LEGITIMIZ$ BY GOV]NM5T'S ULTIMATE MORAL IMMUNITY ( DROIT D'ETAT1 OR 0/ATE 9T]E/0 7ON ?IS1 MORE LAT]74 ,BUT 9 ANY CASE1 ! CORRESPOND5T'S >GUM5T IS WIDELY %>$3 ,9/ITUTIONS PROTECT US AGA9/ \RSELVES1 ABOVE ALL AGA9/ :AT W\LD O!RWISE PREVAIL--*AOS & DISORD]4 

,IT'S WOR? EXAM9+ ?IS SPECIFIC PROPOSITION 9 MORE DETAIL BY TAK+ ! OPPOSITE CASE3 A ?\<T EXP]IM5T--IMAG9E A WORLD )\T 9/ITUTIONS4 ,& LET US TAKE A DIFFICULT CONTEXT3 ! SOMETIMES V5AL & SECRETIVE WORLD ( F9ANCIAL 9VE/M5T4 

,! GIGANTIC ,PONZI S*EME OR*E/RAT$ BY ! F9ANCI] ,B]N>D ,MAD(F WAS ! WORLD'S L>GE/ FRAUD EV] P]PETRAT$ BY ONE MAN4 ,IT RU9$ ?\S&S ( 9VE/ORS & SYMBOLIZ$ ! MO/ GROTESQUE EXCESSES ( ,WALL ,/REET4 ,DESPITE ! ABJECT FAILURE TO CAT* ,MAD(F BY ! GOV]NM5T BODY E/ABLI%$ TO POLICE & REGULATE ! 9VE/M5T 9DU/RY1 IT WAS ALMO/ UNIV]SALLY AGRE$ ?AT ! BE/ WAY TO PREV5T SU* CRIMES 9 FUTURE WAS TI<T] REGULATION & SCRUT9Y ( ! 9VE/M5T 9DU/RY4 ,! OV]:ELM+ REACTION WAS ?AT ! GOV]NM5T %\LD HAVE PROTECT$ ! 9NOC5T 9VE/ORS3 ,SOME?+ MU/ BE DONE6 

,BUT !RE MAY BE AN ALT]NATIVE APPROA* ?AT OV]TURNS EV]Y ASSUMPTION WE HAVE AB\T H[ TO DET]1 PREV5T & PUNI% SU* CRIMES 9 FUTURE4 ,IT MAY BE ?AT ! V]Y RULES & 9/ITUTIONS E/ABLI%$ TO PROTECT US 9 FACT DO ! OPPOSITE4 

,MAD(F'S FRAUD WAS SIMPLE4 ,HE 5C\RAG$ 9VE/ORS TO DEPOSIT MONEY ) HIS FIRM1 PAY+ !M RETURNS ?AT W]E CONSI/5TLY HI<] ?AN ! GO+ RATE4 ,) ! APPEAL ( ABOVE-M>KET & ABOVE ALL /EADY RETURNS1 ,MAD(F HAD LITTLE DIFFICULTY 9 ATTRACT+ NEW 9VE/ORS4 ,!IR FRE% DEPOSITS W\LD BE US$ TO FUND RETURNS TO ! E>LI] 9VE/ORS4 ,ALL ! S*EME REQUIR$ WAS A NEV]-5D+ FL[ ( NEW 9VE/ORS1 ) DEPOSITS SUFFICI5T TO FUND ! ABOVE-M>KET RETURNS TO ! E>LI] 9VE/ORS1 & TO PAY (F ! OCCASIONAL DEPOSITOR :O WI%$ TO )DRAW !IR :OLE 9VE/M5T--& = OBVI\S REASONS1 ?OSE WI%+ TO )DRAW FROM ?IS CA% C[ ( EASY MONEY W]E FEW4 

,MAD(F & HIS COCONSPIRATORS MANUFACTUR$ A HUGE VOLUME ( FALSIFI$ REPORTS & DATA TO PRET5D ?AT !IR FRAUDUL5T S*EME WAS 9 FACT A LEGITIMATE & HI<LY SUCCESSFUL 9VE/M5T BUS9ESS4 ,MAD(F'S COV] WAS EFFECTIVE4 ,ON ?REE OCCASIONS 9 ! #a#i#iS1 HE WAS ELECT$ *AIRMAN ( ! ,N,A,S,D,A,Q4 ,BY HIS [N ADMISSION1 HE P]PETRAT$ ?IS MASSIVE FRAUD = NE>LY TWO DECADES1 & WAS UNCOV]$ ONLY :5 ! PRECIPIT\S M>KET COLLAPSES AT ! 5D ( #bh PREV5T$ HIM FROM RAIS+ ! FUNDS TO PAY (F ?OSE WI%+ TO )DRAW !IR MONEY4 ,9 ! 5D1 IT WAS E/IMAT$1 ,MAD(F'S FRAUD CO/ HIS 9VE/ORS P]HAPS @s#b BILLION4 

,LESS SIMPLE IS :Y A S*EME ( SU* MAGNITUDE & P]VASIVE DI%ONE/Y SUCCE$$ = SO LONG4 ,MAD(F LI$ SY/EMATICALLY BO? TO HIS 9VE/ORS & TO ! SUP]VIS+ F$]AL AU?ORITIES4 ,9 ?IS CRIM9AL 5DEAVOR1 HE WAS APP>5TLY ASSI/$ BY COLLEAGUES1 SOME ( :OM HAVE BE5 PROSECUT$ OR FACE FUR!R 9VE/IGATION4 ,BUT ! SCALE ( PR(ITS FROM HIS FUND %\LD HAVE PROVOK$ MORE 9TRUSIVE SUSPICION2 FEW O!RS )9 ! 9DU/RY TRI$ TO WORK \T H[ HIS COMPANY C\LD CONSI/5TLY MAKE SU* HI< PR(ITS1 AGA9/ M>KET TR5DS1 \TP]=M+ ALL COMPETITORS YE> AFT] YE>4 

,! 9/ITUTIONS DESIGN$ TO PREV5T SU* CRIME COMPLETELY FAIL$4 ,! ,SECURITIES & ,EX*ANGE ,COMMISSION 7,S,E,C71 ! F$]AL BODY E/ABLI%$ 9 ! #a#i#cS TO SUP]VISE ! 9VE/M5T 9DU/RY1 CONDUCT$ SEV]AL 9VE/IGATIONS4 ,MAD(F HIMSELF HAS LAT] SAID ?AT HE HAD 0HUNDR$S0 ( CONTACTS ) ,S,E,C /AFF4.<#f#h.>  ,PROMPT$ BY TIP-(FS FROM O!RS 9 ! 9DU/RY :O QUE/ION$ ,MAD(F'S FANTA/IC PR(ITS1 ! ,S,E,C FAIL$1 H[EV]1 TO UNCOV] ! CRIME4 

,A LAT] REPORT ON H[ ! ,S,E,C MISS$ ,MAD(F F\ND MANY FAIL+S3 ,/AFF W]E OV]SPECIALIZ$1 DEVOT$ TO P>TICUL> SUBSETS ( FRAUD & REW>D$ = PURSU+ ?AT P>TICUL> K9D ( CRIME4.<#f#i.>  ,DIFF]5T P>TS ( ! ,S,E,C 9VE/IGAT+ ,MAD(F W]E UNAW>E ( EA* O!R4 ,EA* 9DIVIDUAL P>T CLE>$ ,MAD(F ( O!R ALLEGATIONS AGA9/ HIM4 ,TOGE!R1 !Y MANAG$ TO MISS ! BIG PICTURE4 

,ELSE:]E1 ! REPORT REVEAL$ NOT ONLY ?AT ,S,E,C /AFF W]E (T5 9COMPET5T 9 UND]/&+ ,PONZI S*EMES1 BUT ?AT ,MAD(F 9TIMIDAT$ ,S,E,C 9VE/IGATORS BECAUSE ( HIS /ATURE ON ,WALL ,/REET4 ,! 9VE/IGATION AT ONE PO9T DESCRIBES 9VE/IGATORS AS 05?RALL$0 BY ,MAD(F3 ,SOME ( !M ASK$ ,MAD(F'S /AFF IF !Y C\LD WORK = HIM4.<#g.> 

,?IS FAILURE APPE>S P>T ( A DISQUIET+ PATT]N4 ,IT WAS ONLY AFT] ! ,B,P ,GULF OIL SPILL ( #ba ?AT ! MANY FAIL+S ( ! BODY ASSIGN$ TO MONITOR & REGULATE ! OIL 9DU/RY SURFAC$4 ,9 ! AFT]MA? ( ! DISA/]1 IT EM]G$ ?AT ! ,M9]ALS ,MANAGEM5T ,S]VICE 7,M,M,S7 HAD ALL[$ ,B,P TO SKIP 5VIRONM5TAL ASSESSM5TS AHEAD ( DRILL+ ! WELL ?AT SPEW$ MILLIONS ( B>RELS ( OIL 9TO ! ,GULF4 ,M,M,S 9SPECTORS HAD ALSO P]MITT$ OIL COMPANY EMPLOYES TO FILL \T 9SPECTION =MS 9 P5CIL1 :I* !Y W\LD !N 9K 94 ,O!RS HAD ACCEPT$ ILLEGAL GIFTS1 CONSUM$ DRUGS & LIT]ALLY GONE TO B$ ) (FICIALS FROM ! COMPANIES !Y W]E SUPPOS$ TO REGULATE4.<#g#a.>  ,ONE 9SPECTOR HAD NEGOTIAT$ A JOB ) AN OIL COMPANY :ILE AT ! SAME TIME 9SPECT+ ! COMPANY'S OP]ATIONS4 

,) ,MAD(F1 ! F9ANCIAL 9DU/RY'S [N SELF-REGULATORY BODIES DID NO?+ TO 9VE/IGATE OR /OP HIS SUSPICI\SLY PR(ITABLE ACTIVITIES4 ,?IS WAS UNSURPRIS+ GIV5 ?AT ,MAD(F WAS A PROM95T MEMB] ( MANY ( !M4 ,MAD(F WAS AT V>I\S TIMES *AIRMAN OR BO>D MEMB] ( ! ,NATIONAL ,ASSOCIATION ( ,SECURITIES ,DEAL]S1 A SELF-REGULATORY SECURITIES 9DU/RY ORGANIZATION4 ,! ,MAD(F FAMILY HAD LONG/&+1 HI<-LEVEL TIES TO ! ,SECURITIES ,9DU/RY & ,F9ANCIAL ,M>KETS ,ASSOCIATION1 ! PRIM>Y SECURITIES 9DU/RY ORGANIZATION4 ,MAD(F'S BRO!R ,PET] S]V$ TWO T]MS AS A MEMB] ( ?IS ORGANIZATION'S BO>D ( DIRECTORS4 

,MAD(F WAS REG>D$ AS A DOM9ANT FIGURE 9 ! 9VE/M5T 9DU/RY1 ONE ( ! L>GE/ 0M>KET MAK]S0 AT ! ,N,A,S,D,A,Q4 ,HE & HIS COMPANY W]E MAJOR POLITICAL DONORS3 ,NOTABLY1 HE GAVE NE>LY A QU>T] ( A MILLION DOLL>S TO BO? ,DEMOCRATS & ,REPUBLICANS1 9DICATIVE NOT ( ANY POLITICAL PREF]5CE1 BUT MORE A NAK$ PUR*ASE ( 9FLU5CE4 ,SOME HAVE SUGGE/$ ?AT HIS POLITICAL CONNECTIONS1 & L9KS TO ! ,S,E,C1 HELP$ DET] A MORE ?OR\< 9VE/IGATION ( HIS ACTIVITIES4 

,! TE/IMONY ( F9ANCIAL ANALY/ & W\LD-BE ,MAD(F :I/LEBL[] ,H>RY ,M>KOPOLOS TO ,CONGRESS1 AFT] ! FRAUD WAS UNCOV]$1 WAS REVEAL+4 ,GIV+ EVID5CE TO ! ,H\SE ( ,REPRES5TATIVES CAPITAL M>KETS SUBCOMMITTEE1 ,M>KOPOLOS SAID ?AT HE HAD 9VE/IGAT$ ,MAD(F ON BEHALF ( A GR\P ( PRIVATE 9VE/ORS4.<#g#b.>  ,AFT] ONLY A %ORT EXAM9ATION ( ! NUMB]S1 HE CAME TO ! CONCLUSION ?AT ,MAD(F'S SPECTACUL> RETURNS C\LD BE EXPLA9$ ONLY BY ONE 9VE/M5T TE*NIQUE3 FRAUD4 ,M>KOPOLOS TE/IFI$ ?AT = N9E YE>S HE HAD REPEAT$LY TRI$ TO GET ! ,S,E,C TO 9VE/IGATE & %UT D[N ! ,MAD(F ,PONZI S*EME4 ,! ,S,E,C HAD NOT ONLY IGNOR$ !SE W>N+S1 ACCORD+ TO ,M>KOPOLOS1 BUT WAS FUNDAM5TALLY 9CAPABLE ( UND]/&+ ! COMPLEX F9ANCIAL 9/RUM5TS BE+ TRAD$ 9 ! TW5TY-FIR/ C5TURY4 ,& H]E LIES ONE CLUE TO :AT MI<T BE DONE TO PREV5T SU* CRIME 9 FUTURE4 

,ANO!R LIES 9 AN UNCOMPROMIS+ LOOK AT ! 9VE/ORS !MSELVES4 ,MANY SUFF]$ T]RIBLY FROM ,MAD(F'S FRAUD1 LOS+ LIFE SAV+S1 BE+ =C$ TO SELL HOMES OR RETURN FROM A WELL-E>N$ RETIREM5T TO WORK 9DEF9ITELY1 !IR NE/ EGG /OL54 ,9 MANY CASES1 !IR LIVES W]E UTT]LY RU9$4 ,BUT :Y DID !SE 9VE/ORS GIVE !IR MONEY TO ,MAD(F )\T ! MO/ CURSORY SCRUT9Y ( HIS COMPANY8 ,MAD(F'S RETURNS W]E SO IMPLAUSIBLE ?AT ANY S5SIBLE 9VE/OR %\LD HAVE HELD BACK1 BUT MANY COMMITT$ !IR 5TIRE LIFE SAV+S4 ,H>RY ,M>KOPOLOS TOLD ,CONGRESS ?AT 9VE/+ 9 ,MAD(F WAS A 0NO-BRA9]0 9 ?AT 0Y\ HAD TO HAVE NO BRA9S :ATSOEV] TO 9VE/ 9TO SU* AN UNBELIEVABLE P]=MANCE RECORD ?AT BE>S NO RESEMBLANCE TO ANY O!R 9VE/M5T MANAG]'S TRACK RECORD ?R\<\T RECORD$ HUMAN HI/ORY40 

,SOME COMM5TATORS HAVE SUGGE/$ ?AT ONE ( ,MAD(F'S TE*NIQUES WAS TO H9T AT A VAGUE AIR ( WRONGDO+ TO HELP JU/IFY HIS O!RWISE 9EXPLICABLE RETURNS4 ,! RI<T TO 9VE/ 9 HIS COMPANY WAS BY 9VITATION ONLY1 CREAT+ AN AIR ( DESIRABLE--& P]HAPS DISREPUTABLE--EXCLUSIVITY1 ?AT SOME?+ SPECIAL WAS GO+ ON1 MAYBE SOME?+ IF NOT ILLEGAL !N A LITTLE BIT QUE/IONABLE3 9SID]-TRAD+ P]HAPS1 ( SOME K9D4 ,= SEV]AL YE>S1 POT5TIAL 9VE/ORS :O APPROA*$ ,MAD(F W]E TOLD ?AT ! FUND WAS 0CLOS$40 ,SU* FALSE ALLURE IS ! CLASSIC SIGN ( A ,PONZI S*EME4 

,9 ,! ,NEW ,YORK ,TIMES1 BUS9ESS COMM5TATOR ,JOE ,NOC]A HAS >GU$ ?AT = !SE 9VE/ORS TO BLAME ! GOV]NM5T = !IR DECISION TO GIVE EV]Y LA/ P5NY TO ,B]NIE ,MAD(F 0IS LIKE A *ILD BLAM+ HIS MO!R = LETT+ HIM />T A FI<T :ILE %E WASN'T LOOK+40.<#g#c.>  ,BUT H]E LIES ONE EXPLANATION ( :Y PEOPLE MAY HAVE 9VE/$ 9 ,MAD(F4 ,! M]E EXI/5CE ( ! ,S,E,C1 ) ITS CLAIM TO SUP]VISE1 SCRUT9IZE & PROTECT1 MU/ 9EVITABLY L[] PEOPLE'S [N S5SITIVITY TO RISK4 ,IF ! TEA*] IS PRES5T1 :AT IS GO+ ON 9 ! PLAYGR\ND MU/ BE1 9 SOME WAY1 ACCEPTABLE4 

,RESE>* SUGGE/S ?AT :5 MEASURES >E 9 PLACE TO PROTECT PEOPLE FROM RISK1 !Y T5D TO 9DULGE 9 MORE RISKY BEHAVIOR4 ,9 HIS #bf BOOK ,GOV]NM5T ,FAILURE ,V]SUS ,M>KET ,FAILURE1 ,CLIF=D ,W9/ON1 AN ECONOMI/ AT ! ,BROOK+S ,9/ITUTION1 CITES CONSID]ABLE & DIV]SE RESE>* :I* %[S1 = 9/ANCE1 ?AT PEOPLE DRIVE FA/] 9 VEHICLES ?AT FEEL SAF]1 CYCLE MORE DANG]\SLY :5 !Y WE> HELMETS & TAKE LESS C>E BA?+ 9FANTS :5 US+ *ILD SEATS DESIGN$ TO R$UCE ! RISK ( DR[N+4 

,?IS RESE>* MAKES S5SE4 ,WE T5D TO L[] \R GU>D :5 TOLD ?AT ! COA/ IS CLE>4 ,9DE$1 SO EVID5T IS ?IS FUNDAM5TAL HUMAN T5D5CY ?AT ONE CAN MAKE A FUR!R1 & P]HAPS PROVOCATIVE1 PRESUMPTION3 ?AT CRIM9AL FRAUDS LIKE ,MAD(F >E ACTUALLY MADE MORE FEASIBLE BY ! PRES5CE ( 9/ITUTIONAL AU?ORITIES DESIGN$ TO PREV5T !M4 ,! EVID5CE = ?IS SEEM+LY \TRAGE\S CLAIM IS 9 FRONT ( \R NOSES3 ,! FRAUD HAPP5$1 RI<T UND] ! ,S,E,C'S NOSE4 

,MOREOV]1 AS ! ,MAD(F EXAMPLE HAS CLE>LY %[N1 IT IS NAIVE TO EXPECT ANY S+LE AU?ORITY TO KEEP UP ) ! MASSIVE COMPLEXITY & DYNAMIC *ANGES ( AN 9DU/RY LIKE SECURITIES 9VE/M5T4 ,!RE IS A FUNDAM5TAL & 9SOLUBLE IMBALANCE 9 SU* SUP]VISION4 ,GOV]NM5T BODIES SUFF] ! CON/ANT DEPR$ATIONS ( BUDGET CYCLES1 CUTS & ! 9TR9SIC DISADVANTAGES ( EMPLOY]S :O CAN (F] SAL>IES EQUIVAL5T TO ONLY A T9Y PROPORTION ( ?OSE AVAILABLE 9 ! 9DU/RY !Y SUP]VISE4 ,GIV5 ?IS FUNDAM5TAL & P]SI/5T P[] IMBALANCE1 IT IS SURPRIS+ NOT ?AT 9/ITUTIONS LIKE ! ,S,E,C FAIL1 AS !Y REGUL>LY DO1 BUT ?AT 9VE/ORS EXPECT SU* 9/ITUTIONS TO KEEP UP ) ! FREE-:EEL+1 GRE$-TA9T$ & SECRETIVE WORLD ( SECURITIES 9VE/M5T4 

,ON ! BROAD] SCALE1 IT IS (T5 CLAIM$ ?AT ! REC5T GLOBAL CR$IT CRISIS WAS CAUS$ BY ! ABS5CE--OR MORE PRECISELY1 ! )DRAWAL--( ! CORRECT CONTROLS ON ! F9ANCIAL 9DU/RY4 ,IT IS P]SUASIVELY >GU$ ?AT IT WAS ! PROLIF]ATION ( C]TA9 F9ANCIAL 9/RUM5TS1 COLLECTIVELY KN[N AS D]IVATIVES1 & SPECIFICALLY 0CR$IT DEFAULT SWAPS0 7OR ,C,D,SS71 :I* HELP$ SPREAD ! POISON ( ! SUBPRIME MORTGAGE CRISIS ACROSS ! WORLD4 ,C,D,SS >E ESS5TIALLY LEGALIZ$ GAMBL+3 ,!Y >E BETS ON :E!R C]TA9 F9ANCIAL 9DICES1 LIKE MORTGAGE REPAYM5TS OR /OCK PRICES1 WILL RISE OR FALL2 A F9ANCIAL 9/RUM5T ?AT ,W>R5 ,BUFFETT HAS CALL$ 0F9ANCIAL ,WEAPONS ( ,MASS ,DE/RUCTION40 ,SOME HAVE CALL$ !M ! TW5TY-FIR/-C5TURY V]SION ( ! 0BUCKET %OPS0 ( ! #a#i#bS :]E PEOPLE C\LD BET ON :E!R /OCKS C\LD RISE OR FALL )\T ACTUALLY [N+ ?OSE /OCKS4 ,! BUCKET %OPS W]E BLAM$ = ! WILD SPECULATION ?AT HELP$ FUEL ! ,WALL ,/REET ,CRA% ( #a#i#b#i4 ,!Y W]E SUBSEQU5TLY \TLAW$4 ,9 #b1 ,CONGRESS PASS$ A LITTLE KN[N LAW ?AT ESS5TIALLY P]MITT$ SU* BETT+ AGA94 ,AS = ! 9DU/RY'S [N ALLEG$ SAFEGU>DS1 BANKS PAID ! RAT+S AG5CIES TO RATE & ?US 5DORSE ! MORTGAGE-BAS$ 9VE/M5T 9/RUM5TS ?AT 0SLIC$ & DIC$0 & CONCEAL$ & SPREAD ! DANG]\S RISK ( SUBPRIME L5D+4 

,MANY COMM5TATORS HAVE !RE=E REASONABLY CONCLUD$ ?AT ! OBVI\S ANSW] IS FUR!R REGULATION1 TO BAN ,C,D,SS & RELY ON LEGISLATION TO TAME ! 9DU/RY4 ,! PROBLEM ) ?IS ANALYSIS1 H[EV]1 SO TEMPT+ 9 !SE TURBID DAYS1 IS ?AT IT RE/S ON AN ASSUMPTION AB\T ! LEGISLATIVE PROCESS ?AT IS P]IL\S 9DE$3 ?AT LEGISLATORS ACT UPON ! 9T]E/S ( VOT]S1 & NO ONE ELSE4 ,! LAW 9 QUE/ION1 ! ,COMMODITY ,FUTURES ,MOD]NIZATION ,ACT1 WAS PASS$ 9 #b BY A ,DEMOCRATIC ADM9I/RATION2 IT WAS PROPOS$ BY ! ,CL9TON ADM9I/RATION & PASS$ QUICKLY ?R\< BO? ,H\SES4 ,NOT ONE MEMB] ( ,CONGRESS RAIS$ OBJECTIONS TO ?IS P>TICUL> PROVISION1 :I* WAS SECRET$ AWAY 9 A BILL ( MANY HUNDR$S ( PAGES4 ,NE$LESS TO SAY1 ?AT YE> ! F9ANCIAL S]VICES 9DU/RY1 :I* /RONGLY SUPPORT$ ! BILL1 CONTRIBUT$ L>GE AM\NTS TO BO? ,DEMOCRATS & ,REPUBLICANS4 

,AFT] ! CRA%1 POLITICIANS ON BO? SIDES ( ! ,ATLANTIC RO>$ !IR POPULI/ ANG] AGA9/ ! BANKS & MORTGAGE COMPANIES ?AT HELP$ PRECIPITATE ! CRISIS1 !N DEM&$ MASSIVE GOV]NM5T BAIL\TS = !IR COMPANIES1 :ILE CONT9U+ TO PAY !IR EXECUTIVES GROTESQUE BONUSES4 ,9 ALL C\NTRIES1 POLITICAL LEAD]S QUEU$ UP TO DECRY ! GRE$ & SWE> !IR COMMITM5T TO LEGISLATION ?AT W\LD 0NEV] AGA90 ALL[ SU* ABUSE TO RECUR4 ,BUT \T ( ?IS BELL[+ PUBLIC RAGE1 ! LEGISLATION ACTUALLY DELIV]$ RESEMBL$ MORE A M\SE'S SQUEAK4 

,! LEGISLATION IS COMPLEX4 ,9 ! ,U4,S41 ! BILL F9ALLY PASS$ 9 ,JULY #b#a1 ALLEG$LY TO 0RE=M ,WALL ,/REET10 IS A DOCUM5T ( ?\S&S ( PAGES4.<#g#d.>  ,MANY ( ITS PROVISIONS >E HI<LY TE*NICAL 9 NATURE1 ALL[+ POLITICIANS TO CLAIM TO AN ILL-9=M$ PUBLIC ?AT ! NEW LAW AM\NTS TO MORE ?AN IT 9 REALITY IS4 ,! PRESS1 9 ITS COMPLAC5CY AS ! 0F\R? E/ATE0 9 ! BODY POLITIC1 DID LITTLE TO 9QUIRE 9TO & EXPLA9 ! COMPLEXITIES4 ,= 9/ANCE1 MU* WAS MADE ( ! PROHIBITIONS AGA9/ 0PROPRIET>Y TRAD+02 MO/ PEOPLE W\LD HAVE NO CLUE :AT ?IS ACTUALLY IS4 

,9 FACT1 ?IS PROHIBITION1 9 ANY CASE V]Y LIMIT$1 WILL DO ALMO/ NO?+ TO PREV5T ! K9D ( COLLAPSE ?AT ! GLOBAL ECONOMY EXP]I5C$ 9 #bh & #b#i4 ,)9 MON?S ( ! 0RE=M ,WALL ,/REET0 LEGISLATION1 BANKS W]E F9D+ WAYS TO CIRCUMV5T ?IS 0,VOLCK] RULE0 TO LIMIT TRAD+--P]HAPS BETT] KN[N AS BETT+--ON !IR [N ACC\NTS3 PRECISELY ! ACTIVITY ?AT HELP$ BR+ D[N ,LEHMAN ,BRO!RS 9 #b#g4.<#g#e.> 

,MO/ F9ANCIAL COMM5TATORS AGRE$ ?AT !RE WAS ONE SIMPLE & EASILY EXPLICABLE MEASURE ?AT W\LD SURELY HAVE LIMIT$ ! ABILITY ( BANKS TO CREATE ! *AOS ?AT !Y DID3 LIMITS ON CAPITAL-TO-LOAN RATIOS1 I4E41 REQUIRE BANKS TO HOLD MORE CAPITAL RELATIVE TO !IR L5D+4 ,9 ! CONFUSION & OBSCURITY ( NEW MEASURES1 SU* RULES W]E L>GELY ABS5T OR1 IF PRES5T1 9 WAT]$-D[N =M4 ,9/EAD1 9 A TELLTALE SIGNAL ?AT ! NECESS>Y T\< DECISIONS HAD BE5 DODG$1 ,CONGRESS SET UP NEW BODIES1 & NEW ME*ANISMS1 TO DEAL ) !SE PROBLEMS 9 ! FUTURE4 ,LIKEWISE1 AM5DM5TS DESIGN$ TO ADDRESS ! PROBLEM ( BANKS 0TOO BIG TO FAIL10 BY LIMIT+ !IR CAPITAL & ?US ! RISK !Y POSE TO ! :OLE ECONOMY1 W]E REJECT$4 ,9/EAD ( PASS+ ! NECESS>Y MEASURES 9 ! IMM$IATE AFT]MA? ( ! CRA%1 :5 !Y MI<T HAVE BE5 POLITICALLY POSSIBLE1 ! CONGRESSIONAL LEGISLATION EMP[]S A NEW REGULATORY BODY TO PASS !M 9 FUTURE1 :5 )\T D\BT /ILL LESS POLITICAL SUPPORT WILL BE AVAILABLE4 ,9 A SURE SIGN ?AT ! LEGISLATION WAS 9DE$ TO ! B5EFIT1 NOT DETRIM5T1 ( ! BANKS1 %>ES 9 ALL F9ANCIAL S]VICE COMPANIES SIGNIFICANTLY ROSE IMM$IATELY AFT] ! ,S5ATE VOTE4 

,MEAN:ILE1 AT ! GLOBAL LEVEL1 NEI!R ! ,G#b NOR ! GLOBAL BANK+ REGULATORY ME*ANISM1 ! ,BASEL ,COMMITTEE1 HAVE MANAG$ TO AGREE ON MEASURES TO 5SURE ?AT BANKS HOLD SUFFICI5T DEPOSITS AGA9/ L5D+4 ,! 0,BASEL ,I,I,I0 PROPOSALS 9 #b#a1 CELEBRAT$ BY ! BANK+ 9DU/RY AS A MAJOR /EP =W>D1 W]E JUDG$ BY A MORE 9DEP5D5T & DIS9T]E/$ GR\P ( DI/+UI%$ ACADEMIC F9ANCE EXP]TS AS 0F> FROM SUFFICI5T TO PROTECT ! SY/EM FROM RECURR+ CRISES40.<#g#f.>  ,CLIVE ,CROOK 9 ! ,F9ANCIAL ,TIMES COMM5T$ ?AT ! NEW ,BASEL RULES W]E AN IMPROVEM5T ON ! PREC$+ >RANGEM5TS1 BUT 0NOT BY MU*40.<#g#g.> 

,! REASON = ?IS FAILURE IS NOT H>D TO F9D4 ,AS SOON AS ANYONE SUGGE/$ MORE EFFECTIVE MEASURES1 LIKE HI<] CAPITAL-TO-L5D+ RATIOS1 LEGIONS ( BANK+ 9DU/RY SPOKESM5 W\LD RISE AS ONE TO COMPLA9 ?AT SU* REQUIREM5TS W\LD R5D] ,U4,S4 F9ANCIAL COMPANIES 0UNCOMPETITIVE0 9 ! GLOBAL M>KET PLACE4 ,! ,C,E,O ( ,J,P,MORGAN ,*ASE1 = 9/ANCE1 WAIL$ ?AT NEW F9ANCIAL REGULATION 9CLUD+ /RICT] CAPITAL CONTROLS W\LD BE ! 0NAIL 9 ! C(F90 ( BIG ,AM]ICAN BANKS1 ADD+ = GOOD MEASURE ?AT ?IS W\LD 0GREATLY DIM9I% GR[?40.<#g#h.>  ,?IS WAS A P[]FUL >GUM5T 9 A C\NTRY DEEPLY MIR$ 9 RECESSION4 ,BUT ! >GUM5T R>ELY NE$$ TO BE PUBLICLY ADVOCAT$3 ,!RE WAS PRECI\S LITTLE PUBLIC DEBATE ON ! BILL1 S9CE POLITICIANS1 BO? ,DEMOCRATS & ,REPUBLICANS1 CONSPIR$ TO PRET5D ?AT ! BILL HAD %>P TEE? :5 9 FACT IT WAS BUT A SET ( CRUMMY PLA/IC D5TURES4 

,?IS TOO WAS UNSURPRIS+1 S9CE ! F9ANCIAL 9DU/RY HAD TAK5 C>E TO DONATE G5]\SLY TO BO? SIDES4 ,9 ADVANCE ( ! CONGRESSIONAL BILL1 F9ANCIAL 9/ITUTIONS SP5T @s#a4#d MILLION A DAY ON LOBBY+2 !Y HAD HIR$ SEV5TY =M] ,CONGRESS MEMB]S TO !IR PAYROLL1 & #id =M] F$]AL EMPLOYES4 ,S5ATOR ,SCOTT ,BR[N1 A ,REPUBLICAN FROM ,MASSA*USETTS1 RAK$ 9 0(F-!-*>TS0 DONATIONS FROM ! F9ANCIAL 9DU/RY :ILE WORK+ TO WAT] D[N ! F9ANCIAL BILL4.<#g#i.>  ,ON ! ,DEMOCRATS' SIDE1 ,PRESID5T ,OBAMA'S !N BUDGET DIRECTOR1 ,PET] ,ORZSAG1 LEFT ! ,:ITE ,H\SE & WAIT$ A SEEMLY F\R MON?S BE=E JO9+ ,CITIBANK1 :I* ( C\RSE WAS BUSY M>KET+ NEW CR$IT C>DS TO 9DEBT$ ,AM]ICANS4 

,! CONGRESSIONAL DEBATE WAS 9 FACT NOT A SUB/ANTIVE DISCUSSION ( :AT WAS REALLY REQUIR$ TO PREV5T ANO!R F9ANCIAL MELTD[N 9 ! FUTURE4 ,IT WAS 9/EAD A K9D ( !ATRICAL P]=MANCE PRES5T$ = ! PUBLIC'S B5EFIT TO REASSURE !M ?AT 0SOME?+ WAS BE+ DONE40 ,! ,REPUBLICAN *AIRMAN ( ! ,H\SE ,F9ANCIAL ,S]VICES ,COMMITTEE1 ,SP5C] ,BA*US1 SOON AFT]W>DS REM>K$ ) REFRE%+ C&OR ?AT 0MY VIEW IS ?AT ,WA%+TON444 .<IS.> !RE TO S]VE ! BANKS40 

,! ANSW] !N MAY BE TO DO ! ONE ?+ ?AT NO ONE SEEMS PREP>$ TO CONTEMPLATE3 ,TAKE AWAY ! TEA*] 9 ! PLAYGR\ND4 ,LET AN>*Y REIGN4 ,IT'S 9T]E/+ TO CONTEMPLATE :AT MI<T FOLL[4 ,SOME PO9T]S >E ALREADY AVAILABLE3 9 ! BEHAVIORS & SY/EMS ?AT HAVE GR[N UP ON ! ,WORLD ,WIDE ,WEB4 

,ON E,BAY & O!R ONL9E M>KETPLACES1 !RE >E FEW C]TA9 ME?ODS TO PREV5T FRAUD4 ,IT'S EASY = A SELL] TO TAKE PAYM5T ONL9E = IMP]FECT OR NONEXI/5T PRODUCTS !N DISAPPE> 9TO ! ANONYM\S JUNGLE ( ! ,9T]NET4 ,:5 E,BAY BEGAN1 ! ANONYMITY ( ! ,WEB DID LITTLE TO PRODUCE TRU/4 ,ON ! CONTR>Y1 BUY]S & SELL]S W]E QUICK TO COMPLA9 AB\T EA* O!R--(T5 DIRECTLY TO ,PI]RE ,OMIDY>1 ! F\ND] ( E,BAY1 :O 9 ! E>LY DAYS W\LD ANSW] CU/OM] S]VICE COMPLA9TS HIMSELF4 ,HE WAS SOON OV]:ELM$ ) ! VOLUME ( COMPLA9TS4 

,OMIDY> DECID$ TO 9TRODUCE A SY/EM UND] :I* E,BAY P>TICIPANTS C\LD RATE EA* O!R ONL9E--NOT JU/ TO SAY :5 !Y W]E DISSATISFI$1 BUT :5 !Y W]E HAPPY1 TOO4 ,?IS FE$BACK SY/EM IS ONE ( E,BAY'S MO/ WELL-KN[N FEATURES3 ,SELL]S ADV]TISE !IR POSITIVE RAT+S AS A SELL+ PO9T4 ,SELL]S )\T POSITIVE RAT+S /RUGGLE TO F9D BUY]S4 ,?US1 !RE IS A HUGE 9C5TIVE = SELL]S & BUY]S TO TREAT EA* O!R WELL1 IF !Y >E TO DO ANY REPEAT BUS9ESS4 ,& 9T]E/+LY1 LIKE ! ACCUMULATION ( FRI5DS ON ,FACEBOOK1 :I* TAKES MON?S & YE>S TO BUILD UP1 ! ACCUMULATION ( TRU/ 9DICATORS )9 ?IS SY/EM IS ALSO A HUGE B>RI] TO 5TRY = PROSPECTIVE COMPETITORS TO E,BAY4 

,! IDEA--& EFFECT--WAS TO 9C5TIVIZE SELL]S TO BEHAVE WELL3 TO DELIV] :AT !Y SOLD PROMPTLY & 9 GOOD ORD]4 ,! SY/EM SEEM$ TO WORK4 ,9TRODUCTION ( ! RAT+S SY/EM HELP$ DRIVE A MASSIVE 9CREASE 9 TRANSACTIONS ON E,BAY & A R$UCTION 9 ! NUMB] ( FRAUD *>GES >IS+ FROM E,BAY PUR*ASES4 

,9 ,*9A1 ?+S HAVE WORK$ SLI<TLY DIFF]5TLY1 BUT PROVE ! SAME PO9T4 ,H]E1 E,BAY LO/ M>KET %>E TO A COMPETITOR ?AT UND]/OOD BETT] H[ CU/OM]S WANT$ TO BUILD TRU/ ) ONE ANO!R4 ,ON ITS ,*9ESE SITE1 E,BAY DID NOT (F] WAYS = BUY]S & SELL]S TO *AT ONL9E1 FE>+ !Y W\LD CLOSE !IR TRANSACTIONS (F ! SITE TO AVOID PAY+ FEES4 ,BY CONTRA/1 E,BAY'S RIVAL S]VICE1 ,TAOBAO4COM1 UND]/OOD ?AT LIVE CONV]SATIONS W]E NECESS>Y = ,*9ESE CONSUM]S TO CULTIVATE TRU/1 & (F]$ AN 9/ANT-MESSAGE S]VICE TO ALL[ !M TO HAGGLE OV] DEALS4 E,BAY =FEIT$ ! ,*9ESE ONL9E M>KET TO ,TAOBAO P>TLY AS A RESULT4 

,! ONL9E CLASSIFI$S SITE ,CRAIGSLI/ DID SOME?+ SIMIL> TO E,BAY1 FOLL[+ ! PHILOSOPHY ( ITS F\ND]1 ,CRAIG ,NEWM>K1 ?AT 0PEOPLE >E GOOD & TRU/WOR?Y & G5]ALLY JU/ CONC]N$ ) GETT+ ?R\< ! DAY40.<#h.>  ,ALL Y\ HAVE TO DO IS BUILD A M9IMAL 9FRA/RUCTURE & LET !M WORK ?+S \T = !MSELVES4 ,! PRIM>Y ME*ANISM ( ! SITE IS ! R$ FLAG3 ,IF O!R US]S FLAG AN UNACCEPTABLE ADV]TISEM5T 5\< TIMES1 IT WILL DISAPPE>4 ,! MISSION ( ,CRAIGSLI/ IS SIMPLE3 TO 5ABLE LOCAL1 FACE-TO-FACE TRANSACTIONS4 ,?IS =MULA CLE>LY WORKS DESPITE ! MANY ES!TIC FLAWS & FRU/RATIONS ( ,CRAIGSLI/4 ,IT IS BY F> ! MO/ POPUL> COMMUNITY SITE 9 ! ,U4,S41 & IS REPORT$LY VIEW$ BY =TY-SEV5 MILLION UNIQUE US]S EA* MON?4 

,! V]Y OP5NESS ( ! ,WEB1 H[EV]1 HAS BR\<T TO ! SURFACE SOME ( MANK9D'S WOR/ ASPECTS4 ,BUT ) ! TRANSP>5CY1 O!RS >E LE>N+ TO COMBAT ! MO/ UNDESIRABLE & SOMETIMES CRIM9AL ACTIVITIES4 

,= 9/ANCE1 9 #b#a1 CAMPAIGN]S DEM&$ ?AT ,CRAIGSLI/ REMOVE ITS 0,ADULT S]VICES0 SECTION BECAUSE IT WAS BE+ US$ BY SEX TRAFFICK]S TO PIMP UND]AGE GIRLS4 ,CRAIGSLI/ AT FIR/ REFUS$1 CIT+ ITS COMMITM5T TO FRE$OM ( SPEE*1 BUT EV5TUALLY SUCCUMB$ TO ! PRESSURE & REMOV$ ! (F5D+ SECTION4 ,LIKEWISE1 ,AMAZON REMOV$ A SELF-PUBLI%$ BOOK ON P$OPHILIA AFT] MASS ,TWITT] & E-MAIL PROTE/S4 ,9 BO? CASES1 ! ACTION TO ADDRESS ! (F5SE TOOK PLACE ) NO GOV]NM5T 9T]V5TION4 

,SMALL BUS9ESSES EV]Y:]E MU/ RAPIDLY ADAPT TO A WORLD :]E !IR S]VICES & PRODUCTS >E DISCUSS$ OP5LY & CRITICALLY ON ! ,WEB BY CU/OM]S4 ,DISCOM=T+ = SOME1 ! 5=C$ VISIBILITY & CRITICISM ON ! ,WEB IS PROV+ = O!RS A LIB]ATION1 & A SALES ADVANTAGE4 ,! EVID5CE IS M\NT+ ?AT ( TWO O!RWISE ID5TICAL BUS9ESSES1 ! ONE ?AT RESPONDS QUICKLY & POSITIVELY1 & ABOVE ALL TRANSP>5TLY1 TO CU/OM] COMPLA9TS ONL9E1 WILL RAPIDLY GA9 ! BETT] ONL9E RAT+S1 ) POSITIVE CONSEQU5CES = !IR LIKELY SALES4 

,A NEW PH5OM5ON IS EM]G+ ON ! ,9T]NET1 :I* ONE COMM5TATOR HAS CALL$ ! 0,PANOPTICON40.<#h#a.>  ,! ORIG9AL ,PANOPTICON WAS AN IMAG9>Y PRISON1 DESIGN$ BY ,J]EMY ,B5?AM1 :]E ALL P>TS ( ! PRISON W]E VISIBLE FROM ONE C5TRAL PO9T1 )\T ! PRISON]S KN[+ ?AT !Y W]E UND] OBS]VATION AT ANY P>TICUL> MOM5T4 ,BUT ! ,PANOPTICON ( ! ,9T]NET IS NOT = ! OBS]VATION BY ONE ( MANY1 BUT MORE ( 0ALL WAT*+ ALL40 ,AS \R LIVES >E LIV$ 9CREAS+LY ONL9E1 SO >E \R TRACES APP>5T4 ,MORE & MORE IT IS POSSIBLE TO LOCATE1 ID5TIFY & EXAM9E PEOPLE FROM !IR ONL9E PRES5CE4 

,!RE >E OBVI\S PRIVACY CONC]NS H]E1 :I* WE HAVE YET PROP]LY TO CONT5D )4 ,IT IS A NEW & DISQUIET+ WORLD :5 A TRA9EE TEA*] CAN BE D5I$ A COLLEGE DEGREE BECAUSE %E HAS PO/$ A PHOTO ( H]SELF1 DRUNK1 ON ,MY,SPACE4.<#a#f#f.> ,BUT AT ! SAME TIME !RE IS ALSO ! POT5TIAL = A NEW =M ( COLLECTIVE SECURITY4 ,ALREADY1 IT IS POSSIBLE EASILY TO ACCESS ! HUMAN RI<TS & 5VIRONM5TAL RECORDS ( MAJOR COMPANIES2.<#h#b.>  ONE WEBSITE ALL[S Y\ TO RESE>* ALL ! COMPON5TS1 & ! LABOR HI/ORY EMBODI$ 9 !M1 ( EV5 COMPLEX PRODUCTS LIKE COMPUT]S OR ,T,VS4.<#h#c.>  ,IT IS EASY TO SEE H[ ?IS SCRUT9Y WILL SPREAD MORE WIDELY4 ,ALREADY1 EMPLOY]S ,GOOGLE PROSPECTIVE EMPLOYES TO SCRUT9IZE !IR ONL9E HI/ORY4 ,PROSPECTIVE LOV]S DO ! SAME4 ,! ,PANOPTICON IS ALREADY REALITY4 

,:ILE ONL9E TRANSP>5CY & CRITICISM MAY HELP IMPROVE ! S]VICES (F]$ BY COMPET+ LOCAL PLUMB]S1 IT'S H>D] TO SEE H[ IT MAY WORK = ! SECURITIES 9DU/RY1 A WORLD ?AT IS NOT ONLY SECRETIVE BUT ALSO SO COMPLEX ?AT MANY ( ITS MO/ SOPHI/ICAT$ D5IZ5S 7,GEORGE ,SOROS1 = 9/ANCE7 FREELY ADMIT ?AT !Y DO NOT FULLY UND]/& ! F9ANCIAL 9/RUM5TS N[ AVAILABLE4 ,H]E1 WE RETURN TO ,H>RY ,M>KOPOLOS4 

,AFT] CONDUCT+ HIS [N 9VE/IGATION ( ,MAD(F1 & CONCLUD+ ?AT SOME?+ V]Y FI%Y WAS GO+ ON1 ,M>KOPOLOS S\<T TO 9=M ! ,S,E,C :I*1 AS WE N[ KN[1 FAIL$ TO FOLL[ UP ON HIS SUSPICIONS4 ,?IS HE WAS P]MITT$ TO DO BY LAW4 ,M>KOPOLOS WAS NOT1 H[EV]1 P]MITT$ TO PUBLICIZE HIS CONC]NS1 = TO DO SO W\LD HAVE IMM$IATELY MADE HIM VULN]ABLE TO PUNITIVE LAWSUITS BY ,MAD(F4 ,9DE$1 ,M>KOPOLOS TE/IFI$ ?AT ! FAILURE ( ! ,S,E,C TO 9VE/IGATE HIS COMPLA9TS MADE HIM FE> = HIS SAFETY4 ,! NET EFFECT1 !RE=E1 ( ! LAWS EXI/+ AT ! TIME ( ! ,MAD(F FRAUD WAS NOT TO 9=M & PROTECT 9VE/ORS1 BUT TO PROTECT ,MAD(F4 

,P]HAPS IT IS NAIVE TO EXPECT ORD9>Y 9VE/ORS TO 5JOY ! EXP]TIZE TO SCRUT9IZE 9VE/M5T FUNDS LIKE ,MAD(F'S1 EV5 IF ONE MI<T EXPECT !M TO EX]CISE MORE DILIG5CE ?AN ?AT DEMON/RAT$ BY ,MAD(F'S UNWISE & UN=TUNATE 9VE/ORS4 ,IT IS NOT UNREALI/IC1 H[EV]1 TO 5VISAGE A SY/EM :]EBY DIS9T]E/$ EXP]TS MI<T (F] ADVICE ON ! WISDOM ( 9VE/+ 9 C]TA9 FUNDS4 ,LOOK+ AT ! WAY E-COMM]CE IS DEVELOP+ ON ! ,WEB1 ?IS MI<T CONSI/ ( SEV]AL CONNECT$ ELEM5TS3 A RAT+S SY/EM = BUY]S ANONYM\SLY TO RATE !IR 9VE/M5T 0EXP]I5CE10 9DEP5D5T SITES :I* (F] DIS9T]E/$ ADVICE ON V>I\S 9VE/M5T ALT]NATIVES &1 F9ALLY1 9VE/ORS MI<T =M GR\PS--LIKE COOP]ATIVES--SU* AS ?AT :I* HIR$ ,H>RY ,M>KOPOLOS TO CONDUCT RESE>* ON !IR BEHALF4 

,ABOVE ALL1 ! ,WEB %[S ?AT IT IS TRANSP>5CY ?AT W9S CU/OM]S4 ,]GO1 ?OSE ?AT ES*EW IT--OR ACTIVELY REJECT IT1 AS ,MAD(F DID--%\LD PAY ! P5ALTY 9 LO/ BUS9ESS4 ,MAD(F HIMSELF HAS >GU$ ?AT HIS CLAIM$ 0BLACK BOX0 9VE/M5T /RATEGY--! S]IES ( COMPUT]IZ$ ALGORI?MS TO DECIDE EQUITY TRADES--WAS UN9TELLIGIBLE TO MO/ ( ,WALL ,/REET1 LET ALONE ORD9>Y 9VE/ORS1 CLAIM+ ?AT MANY O!R H$GE FUNDS >E SIMIL>LY OPAQUE TO \TSIDE SCRUT9Y3 0,DOES ANYONE KN[ H[1 SAY1 ,R5AISSANCE REALLY MAKES ITS RETURNS80 ,MAD(F ASK$ 9 AN 9T]VIEW ) ! ,F9ANCIAL ,TIMES1 REF]R+ TO ! WILDLY SUCCESSFUL H$GE FUND4.<#h#d.> 

,P]HAPS HE IS RI<T4 ,H[EV]1 :AT IS BEYOND DISPUTE IS ?AT FROM #aiib ONW>D ,MAD(F1 BY HIS [N ADMISSION1 CONDUCT$ NO TRADES AT ALL & FAK$ ! DOCUM5TS1 PRET5D+ ?AT !Y HAD TAK5 PLACE4 ,?IS FRAUD %\LD HAVE BE5 EASY TO DETECT ) ONLY ! MO/ CURSORY SCRUT9Y1 IF ! M>KET W]E MORE TRANSP>5T3 ,IT %\LD BE /RAI<T=W>D TO CORROBORATE ! TRADES ) ! C\NT]P>TIES1 ?OSE :O SUPPOS$LY B\<T & SOLD ,MAD(F'S EQUITY HOLD+S4 ,9 O!R WORDS1 TRANSP>5CY DOES NOT NE$ TO REVEAL ! SECRET 9VE/M5T /RATEGIES ( SUCCESSFUL FUNDS1 BUT IT CAN--& SIMPLY--REVEAL O!R TELLTALE SIGNS ( FRAUD LIKE ,MAD(F'S4 ,UNLIKE HIS FAK$ 9VE/M5T /RATEGY1 ,MAD(F'S FRAUD WAS DEVA/AT+LY SIMPLE4 

,!RE IS P]HAPS A F9AL & SUBTLE LESSON TO BE LE>N$ FROM ?IS MIS]ABLE EPISODE4 ,IT IS CLE> BO? FROM VICTIMS & ,MAD(F HIMSELF ?AT ! WEAL? & P[] ( BIG ,WALL ,/REET PLAY]S WAS A DET]R5T AGA9/ SCRUT9Y & 9VE/IGATION1 9TIMIDAT+ ?OSE :O S\<T TO QUE/ION1 9CLUD+ ! ,S,E,C4 ,FROM MANY ACC\NTS ( ! ,MAD(F SCAM1 ,WALL ,/REET APPE>S AS A LAY]$ HI]>*Y GOV]N$ NOT BY ! ,S,E,C BUT BY AN EXCLUSIVE CLUB ( P[]FUL F9ANCI]S1 :OM ,MAD(F S\<T TO JO9 & SUCCE$$ 9 SO DO+4 ,?IS CLUB WAS B\ND BY A W>Y BUT MUTUAL TRU/ & TACIT AGREEM5T AMONG MEMB]S TO =BE> FROM QUE/ION+ ONE ANO!R'S AFFAIRS TOO CLOSELY4 ,MAD(F CLAIMS ?AT MANY MAJOR ,WALL ,/REET FIGURES & BANKS1 9CLUD+ ,J,P,MORGAN1 KNEW :AT WAS GO+ ON4 ,ONCE ,MAD(F JO9$ ! CLUB1 & HOBNOBB$ ) ITS MEMB]S1 HE WAS ALL BUT UNT\*ABLE4 

,WE HAVE BE5 CULTURALLY CONDITION$ TO ACCEPT ?AT ! PROSECUTION ( ! OCCASIONAL ,MAD(F SOMEH[ PROVES ! P[] ( LAW & 9TR9SIC JU/ICE 9 ! SY/EM4 ,9 FACT1 ! /ORY UNE>!D BY HIS CASE PROVES ! OPPOSITE3 ,! SY/EM IS REVEAL$ AS FUNDAM5TALLY 9IQUIT\S & P]SI/5TLY VULN]ABLE TO CRIME & VIOL5T 9/ABILITY4 ,! GROSS 9EQUALITY ( CONTEMPOR>Y SOCIETY P]MITS A CULTURE ( UNACC\NTABILITY &1 SOMETIMES1 CRIM9ALITY AMONG ! RI*E/ & MO/ P[]FUL4 ,! MO/ EXTREME RESULTS ( ?IS IMBALANCE >E SC&ALS LIKE ,MAD(F BUT ALSO1 ) ! CR$IT CRUN*1 ECONOMIC VOLATILITY ?AT DE/ROYS MILLIONS ( JOBS & 5DANG]S ! 5TIRE GLOBAL ECONOMY4 

,ME?ODS TO ADDRESS ?IS 9EQUALITY WILL BE DISCUSS$ LAT]4 ,MONEY & P[] >E ( C\RSE H>D TO ASSAIL AS S\RCES ( 9FLU5CE & SECRECY4 ,BUT :AT CAN BE *ANG$ IS ! ATTITUDE ( ?OSE \TSIDE ! PRIVATE CIRCLE4 ,WE %\LD NO LONG] BE 9TIMIDAT$4 ,ONE CLE> LESSON ( ! ,MAD(F SC&AL IS ! REQUIREM5T = 9DIVIDUAL 9VE/ORS !MSELVES TO USE GREAT] C>E & SCRUT9Y3 TO EX]CISE1 9 %ORT1 !IR [N AG5CY RA!R ?AN SUBMITT+ !IR *OICES TO ! C>E ( O!RS4 ,EV]YONE HAS ! RI<T TO QUE/ION4 ,?IS IS A RI<T ?AT CANNOT BE TAK5 = GRANT$ BUT MU/ BE CONT9UALLY ASS]T$1 BY ONE & BY ALL4 ,! MORE ?AT EA* ( US DEM&S IT1 ! EASI] IT WILL BE = ALL ( US4 

,! EX]CISE ( COLLECTIVE & 9DIVIDUAL SCRUT9Y1 DIS9T]E/$ ANALYSIS %>$ PUBLICLY1 9SI/5T QUE/ION+3 ,NONE ( !SE ELEM5TS ALONE W\LD NECESS>ILY SUFFICE TO DET] OR PREV5T FUTURE ,MAD(FS4 ,BUT TOGE!R !Y W\LD CREATE A LATTICE ( *ECKS & BALANCES :OSE COLLECTIVE EFFECT W\LD BE TO =CE GREAT] TRANSP>5CY )91 & SCRUT9Y (1 A NOTORI\SLY CLOS$1 CLUBBY & CORRUPT 9DU/RY3 A RESULT ?AT DECADES ( GOV]NM5T SUP]VISION & LEGISLATION HAVE SIGNALLY FAIL$ TO A*IEVE4 

,?AT LATTICE W\LD NOT HAVE A FIX$ /RUCTURE1 & IT W\LD LIKELY *ANGE OV] TIME 9 RESPONSE TO *ANGES 9 ! 9DU/RY IT WAS MONITOR+4 ,IT W\LD NOT HAVE ! REASSUR+ BRICKS-&-MORT> 9/ITUTIONAL PRES5CE1 & CLAIM TO EXP]TIZE & AU?ORITY1 ( A BODY LIKE ! ,SECURITIES & ,EX*ANGE ,COMMISSION--ITSELF A COM=T+ NAME1 AT LEA/ PRIOR TO ,MAD(F4 ,! LATTICE MAY NOT BE IMPOS$ BY LEGISLATION1 & ITS ORIG9 MAY BE 9 A /ATE ( AFFAIRS SOME MI<T CALL AN>*Y--! ABS5CE ( RULES--BUT ITS RESULT W\LD BE NOT ! DISORD] USUALLY ASSOCIAT$ ) ?AT WORD1 BUT ITS OPPOSITE4 

,= TWO DAYS 9 #b#d1 !RE WAS AN>*Y 9 ,KOSOVO4 ,! 0AU?ORITIES0--9 ?IS CASE ! LOCAL POLICE1 ,U,N & ,N,A,T,O PEACEKEEP]S--LO/ CONTROL4 ,?IS WAS NEV] PUBLICLY ADMITT$4 ,! C&ID ADMISSIONS ( FAILURE 9 REPORTS BY ,U,N (FICIALS 9 ,KOSOVO ITSELF W]E ALT]$ AT ,U,N HEADQU>T]S 9 ,NEW ,YORK BE=E !Y W]E REPORT$ TO ! ,U,N ,SECURITY ,C\NCIL1 ! ULTIMATE AU?ORITY :I* SUP]VIS$ ! DE FACTO GOV]NM5T ( ,KOSOVO4 ,IT WASN'T ! ,U,N'S FAULT1 ! ,SECURITY ,C\NCIL WAS TOLD4 ,! VIOL5CE WAS DELIB]ATELY 9/IGAT$ BY EXTREMI/ ,KOSOV> LEAD]S1 AN ALLEGATION = :I* !RE WAS LITTLE H>D EVID5CE4 

,! J\RNALI/S :O >RIV$ 9 ,KOSOVO AFT] ! VIOL5CE *OSE !IR [N CONV5I5T N>RATIVES3 ,?IS WAS A TYPICAL1 IF DEPRESS+1 CYCLE ( ! FAMILI> E?NIC VIOL5CE ?AT HAD PLAGU$ ,KOSOVO1 LIKE ! ,BALKANS1 = G5]ATIONS4 ,ONLY A FEW *OSE TO REPORT ! MORE COMPLICAT$ TRU?1 9CLUD+ ! FACT ?AT ! VIOL5CE HAD BE5 9 P>T A K9D ( REBELLION AGA9/ ! RUL+ AU?ORITIES 9 ,KOSOVO--! ,U,N4 ,ONLY ONE ,N,G,O1 A SPECIALI/ 9 CONFLICT :OSE TWO /AFF W]E DEEPLY EMB$D$ 9 ,KOSOVO'S COMPLICAT$ /ORIES1 MANAG$ TO CAPTURE ! MANY /R&S ( :AT HAD HAPP5$ !RE4.<#h#e.> 

,9 TRU?1 EA* *OS5 N>RATIVE C>RI$ SOME WEI<T4 ,! /ORY ( G5]ATIONAL E?NIC HATR$ WAS1 9 A S5SE1 A TRUE ONE4 ,S]BS W]E ATTACK$ BY ,KOSOVO-,ALBANIAN MOBS ACROSS ! T]RITORY2 MANY ,S]BIAN H\SES W]E BURN$2 SOME ,S]BS W]E PHYSICALLY ASSAULT$2 EI<T W]E KILL$ 7! REMA9D] KILL$ 9 ! VIOL5CE W]E ,KOSOVO-,ALBANIANS %OT BY ,N,A,T,O & ,U,N =CES74.<#h#f.> 

,A SECOND N>RATIVE WAS BETT] CONCEAL$ ?AN ! FIR/1 CONV5TIONAL ACC\NT4 ,?IS WAS ?AT ! ANG] WAS DIRECT$ AS MU* AGA9/ ! ,U,N RUL]S ( ,KOSOVO AS IT WAS AGA9/ ! ,S]BS4 ,DESPITE HAV+ !IR [N DEMOCRATICALLY ELECT$ GOV]NM5T1 ! PEOPLE ( ,KOSOVO W]E EXCLUD$ FROM ! CRUCIAL DECISIONS AB\T !IR [N FUTURE4 ,I SAW ! EVID5CE ) MY [N EYES4 ,! ,U,N WAS ATTACK$ 9 ALL ITS MANIFE/ATIONS--(FICES1 C>S1 /AFF4 ,O!R 9T]NATIONAL ORGANIZATIONS1 SU* AS ! ,E,U1 W]E NOT ATTACK$4 

,!RE WAS A DEEP] FLUX AT WORK TOO4 ,! BOYS & Y\NG M5 9 ! RIOT+ CR[DS W]E NOT SOPHI/ICAT$ POLITICAL CRITICS4 ,IF Y\ HAD ASK$ !M :Y !Y W]E RIOT+1 !Y W\LD NOT HAVE SAID IT WAS BECAUSE ,KOSOVO'S PEOPLE W]E EXCLUD$ FROM POLITICAL DECISION MAK+ AB\T !IR FUTURE4 ,!Y MI<T HAVE SAID1 0,WE HATE ! ,S]BS40 ,BUT :AT ONE MO/ FREQU5TLY HE>D WAS ?IS3 0,IT IS BECAUSE WE >E ANGRY40 ,ANGRY AT ! PO?OLES & ! LACK ( JOBS2 ANGRY AT ! 5DLESS P[] CUTS2 ANGRY BECAUSE ! GIRLS & ! LUXURY WE SEE ON ,M,T,V >E UNAVAILABLE TO US4 

,SO F>1 SO POLITICAL4 ,BUT IT WAS CLE>1 BECAUSE Y\ C\LD FEEL IT1 ?AT !RE WAS A COLLECTIVE EMOTION AT WORK4 ,AN EMOTION ?AT WAS EVID5T 9 9DIVIDUALS1 BUT TOOK GREAT] =CE1 & F\ND EXPRESSION1 ONLY :5 ! CR[D =M$4 ,! VIOL5CE FELT1 9 SOME T]RIBLE 9ADMISSIBLE WAY1 LIKE A RELEASE4 

,AFT] ! VIOL5CE SUBSID$1 ,I RETURN$ TO MY WORK AT ! ,U,N4 ,MY JOB HAD BE5 TO GUIDE ! LOCAL ELECT$ ,KOSOVO GOV]NM5T TO ADOPT SO-CALL$ /&>DS ( DEMOCRACY3 ! RULE ( LAW1 M9ORITY RI<TS & O!R MEASURES ( A /ATE'S WOR?9ESS TO EXI/ & BE ACCEPT$ 9 ! COMMUNITY ( NATIONS4 ,! 09T]NATIONAL COMMUNITY0 9 ?IS CASE WAS EMBODI$ 9 A SMALL & SECRETIVE GR\P ( SIX C\NTRIES KN[N AS ! 0,CONTACT ,GR\P0 :I* RAN 9T]NATIONAL POLICY ON ,KOSOVO4 ,?IS GR\P HAD 9SI/$ ?AT SU* /&>DS BE E/ABLI%$1 & 9 SOME WAY FULFILL$1 BE=E ,KOSOVO C\LD BE CONSID]$ = 0F9AL /ATUS0--:E!R IT C\LD BECOME A /ATE1 AS ! L>GE MAJORITY ( ITS PEOPLE DESP]ATELY WANT$4 

,POLITICALLY1 ! IMPOSITION ( !SE /&>DS WAS ONE REASON :Y ! VIOL5CE HAD ]UPT$4 ,BECAUSE ,RUSSIA1 ! ,U4,S4 & O!RS DISAGRE$ 9 PR9CIPLE ON :E!R ,KOSOVO %\LD BECOME A /ATE1 NO ONE 9 ! 09T]NATIONAL COMMUNITY0 WAS PREP>$ TO SAY :AT PRECISELY ,KOSOVO HAD TO DO TO BECOME 9DEP5D5T4 ,KOSOVO WAS CAU<T 9 A /ATE ( P]PETUAL LIMBO1 LIKE BE+ ORD]$ EV]Y DAY TO TAKE AN EXAM BUT NEV] TOLD IF Y\'D PASS$ OR FAIL$1 OR 9DE$ :AT A PASS OR FAIL REQUIR$4 

,! TWO-DAY ORGY ( VIOL5CE1 !RE=E1 REPRES5T$ A TOTAL FAILURE = MY WORK4 ,I SAT AT MY DESK1 FAC+ ,BESNIK1 MY LOYAL ASSI/ANT1 & />$ AT ! /ACKS ( PAP]S ELABORAT+ ! DEMOCRATIC1 RULE-ABID+ 0/&>DS0 ?AT ,KOSOVO WAS REQUIR$ TO MEET4 ,WE DISCUSS$ :E!R TO TAKE ! PAP]S TO ! /REET \TSIDE ! ,U,N BUILD+1 MAKE A LITTLE PILE & SET FIRE TO !M4 ,9 ! 5D WE DECID$ IT W\LD BE A RIDICUL\S & FUTILE GE/URE3 ,! RIOT]S HAD ALREADY DONE IT = US4 

,ONE 9CID5T1 SEEM+LY UNREM>KABLE1 /UCK 9 MY MEMORY4 ,ON ! MORN+ ( ! SECOND DAY ( ! TR\BLE1 ! HEAD ( ! ,U,N MISSION1 A =M] PRESID5T ( ,F9L&1 HAD SUMMON$ ,KOSOVO'S POLITICAL LEAD]S TO HIS (FICE4 ,HE DEM&$ TO KN[ :AT !Y W]E DO+ TO /EM ! VIOL5CE4 ,READ+ FROM A NOTE PREP>$ BY HIS /AFF]S1 HE LOOK$ OV] HIS SPECTACLES AT ! LEAD]S ACROSS ! CONF]5CE TABLE1 PE]+ AT !M LIKE A REMON/RATIVE S*OOL TEA*] AT HIS UNRULY PUPILS4 

,& ! LEAD]S W]E SIL5T4 ,!Y SAT GLUMLY1 LOOK+ A LITTLE %IFTY1 LIKE NAU<TY S*OOLBOYS :O HAD BE5 CAU<T SMOK+ CIG>ETTES BEH9D ! GYM4 ,A FEW MUTT]$ EXCUSES1 BUT ?OSE UTT]+ !M SEEM$ AS UNCONV9C$ AS WE W]E4 ,!RE WAS A G5]AL AIR ( EMB>RASSM5T4 

,I POND]$ ?IS 9CID5T4 ,:Y HAD ! LEAD]S NOT SPOK5 UP = !IR POLITICAL DEM&S8 ,:Y HAD !Y NOT BLAM$ ! ,U,N & ! 9T]NATIONAL COMMUNITY = /OK+ ! FRU/RAT$ ANG] ( ! ,KOSOVO-,ALBANIAN MAJORITY8 ,:Y HAD !Y RESEMBL$ NO?+ SO MU* AS A BUN* ( ADOLESC5TS BE+ PUNI%$ AFT] S*OOL8 

,SL[LY1 IT DAWN$ ON ME4 ,NO ONE WAS PREP>$ TO TAKE RESPONSIBILITY = ! VIOL5CE1 BECAUSE NO ONE FELT RESPONSIBLE = IT4 ,! BEHAVIOR ( ,KOSOVO'S LEAD]S WAS IMMATURE & *ILDI%1 BECAUSE ?AT WAS :AT WAS EXPECT$ ( !M4 ,! 9T]NATIONAL COMMUNITY HAD REFUS$ TO GIVE !SE POLITICAL LEAD]S ! REAL RESPONSIBILITY TO RUN ! C\NTRY1 TELL+ !M 9/EAD ?AT !Y & !IR C\NTRY W]E NOT YET READY = ! BURD5S ( /ATEHOOD4 ,MY WORK 9 ELABORAT+ & IMPLEM5T+ ! 0/&>DS0 S5T1 & MADE CONCRETE1 ?IS V]Y MESSAGE4 

,KOSOVO WAS P]MITT$ TO HAVE ELECTIONS1 AN ELECT$ GOV]NM5T & A P>LIAM5T1 BUT ! REAL P[] RESID$ 9 AN UNELECT$ (FICIAL--! ,U,N ,SPECIAL ,REPRES5TATIVE1 ! ,F9N1 APPO9T$ BY ! ,U,N ,SECRET>Y-,G5]AL--:O C\LD VETO ANY DECISION MADE BY ! LOCAL ELECT$ GOV]NM5T4 

,! DRAMATIC EV5TS 9 ONE SMALL ,BALKAN PROV9CE 7N[ A /ATE7 W]E UNIQUE1 BUT !RE >E NEV]!LESS LESSONS ( BROAD] SIGNIFICANCE4.<#h#g.>  ,WE/]N DEMOCRACIES >E NOT ON ! CUSP ( VIOL5T DISORD] 7AL?\< IT CANNOT BE RUL$ \T IF ! CURR5T SY/EM IS NOT IMPROV$74 ,! VIOL5CE & UNRE/ ON ! /REETS ( ,KOSOVO1 BUT ABOVE ALL ! FECKLESS BEHAVIOR ( ,KOSOVO'S ELECT$ BUT P[]LESS POLITICIANS1 C>RI$ ONE CRUCIAL LESSON3 ,IF PEOPLE DO NOT HAVE RESPONSIBILITY1 DO NOT EXPECT !M TO BEHAVE RESPONSIBLY4 

,?IS EPISODE SUGGE/S A BROAD] LESSON AB\T DEMOCRACY1 /ABILITY & AN>*Y4 ,DEF5D]S ( ! CURR5T ORD] >GUE ?AT TO AB&ON ! SY/EM ( REPRES5TATIVE DEMOCRACY IS TO 9VITE AN>*Y1 A W> ( ALL AGA9/ ALL4 ,BUT ! #bd DISORD] 9 ,KOSOVO SUGGE/S A MORE SUBTLE & UNEXPECT$ LESSON4 ,IT IS ?IS3 ,! LESS PEOPLE HAVE AG5CY--CONTROL--OV] !IR [N AFFAIRS1 & ! LESS COMM& !Y FEEL OV] !IR FUTURES & !IR CIRCUM/ANCES1 ! MORE 9CL9$ !Y >E TO TAKE TO ! /REETS4 ,! BE/ WAY1 9DE$1 TO 9VITE VIOL5T AN>*Y IS TO R$UCE ! AG5CY & S5SE ( CONTROL ?AT PEOPLE NE$ TO FEEL OV] !IR LIVES4 

,! DISCONNECTION BETWE5 VOT]S & !IR GOV]NM5T1 ALONG ) GOV]NM5T'S DECL9+ ABILITY TO DEAL ) PROBLEMS ( GLOBAL ORIG91 >E COMB9+ 9 ! CURR5T DISP5SATION TO PRODUCE ?IS V]Y EFFECT4 ,! FRU/RATION1 DISILLUSIONM5T & GR[+ EXTREMISM ALL TOO EVID5T 9 TODAY'S DEMOCRACIES >E SYMPTOMS ( ?IS PH5OM5ON3 LOSS ( AG5CY4 ,KOSOVO MAY REPRES5T AN EXTREME CASE1 BUT = IT NOT TO BECOME A H>B+]1 ACTION MU/ BE TAK54 ,\R WAY ( DO+ POLITICS1 9DE$ \R WAY ( ?9K+ AB\T POLITICS1 NE$S TO *ANGE1 FROM PASSIVITY TO ACTION3 RECLAIM+ AG5CY4 

,& 9 ?AT RECLAMATION1 WE MU/ F9D BETT] WAYS ( DO+ BUS9ESS ) ONE ANO!R4 ,IF TOO DI/ANT & CORRUPTIBLE 9/ITUTIONS >E PROV+ 9ADEQUATE1 :AT MI<T WORK8 ,SOME BELIEVE ?AT TE*NOLOGY ALONE1 & ! ,9T]NET 9 P>TICUL>1 CAN DELIV] ! NECESS>Y REVOLUTION4 ,SOME EV5 BELIEVE ?AT ! ,9T]NET IS ! NECESS>Y REVOLUTION1 & ?AT ITS 9H]5TLY HET]OG5E\S & TRANSP>5T NATURE AM\NTS1 9 ITSELF1 TO POLITICAL *ANGE4 ,CLOS] ANALYSIS REVEALS1 H[EV]1 A MORE COMPLICAT$ & AMBIGU\S REALITY4 

,SOME?+ ELSE IS NE$$4 ,& ?AT SOME?+ ELSE1 IT TURNS \T1 DOESN'T REQUIRE FANCY TE*NOLOGY1 ,WEB-BAS$ PLAT=MS & ,TWITT] FE$S 7?\< !Y MAY HELP74 ,?AT SOME?+ ELSE TURNS \T TO BE SIMPLE 9DE$4 

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