The primary ethical failing on Wall Street is not malicious intent (commission) but the failure to act in the system's best interest when it's unprofitable (omission). The culture rewards finding and exploiting a 'hole in the pipeline' rather than flagging it to be fixed.
Modern success, especially in America, is framed as a pure result of merit. This narrative causes the successful to forget the role of luck, privilege, and societal support in their journey, leading to a sense of entitlement.
Individuals in finance are not inherently bad; they are rational actors responding to powerful incentives. The system's singular focus on profit maximization can lead people who would rather do good to engage in behavior with negative externalities.
The speaker laments the decline of the old-fashioned idea that privilege comes with responsibility. He is amazed that today's elites, like CEOs, focus on maximizing their own compensation rather than setting an example of restraint and duty to their organizations and society.
In competitive 'hothouse' environments like Wall Street and Silicon Valley, there is immense pressure to appear knowledgeable. This fear of looking stupid prevents individuals from asking basic questions, which stifles genuine learning and allows flawed assumptions to go unchallenged.
Keep pulling the thread on Michael Lewis.