Today's article in the New York Times illustrates how a regulatory agency eventually gets co-opted by the industry it regulates. In this case the Nuclear regulatory agency in Japan is overwhelmed by industry insiders migrating from company to overseer. The group think this migration engenders cuts through all types of government agencies. The Goldman Sachs executives migrate to high Treasury positions, for example, and quash proposals that allow customers to get real value versus illusory profits.
The decision making in all cases reeks of willful denial of the known, such as the launch of Challenger when there was a very specific warning that rocket seals would not function in sub freezing weather that Florida could never have, yet did on January 28 1986.
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