The review examines 'Lying for Money' by Dan Davies, which explores various types of financial fraud and their economic implications, discussing main themes and types of white-collar crime. Longer summary

This book review explores 'Lying for Money' by Dan Davies, which examines various types of financial fraud and their implications for the broader economy. The review covers the book's main themes, including the idea that fraud is an equilibrium phenomenon, the importance of trust networks in facilitating fraud, and how complex systems are more vulnerable to exploitation. It discusses the four types of white-collar crime outlined in the book: long firm fraud, counterfeiting, control fraud, and market crimes. The review also highlights the book's insights on how frauds tend to grow over time and the challenges in preventing and prosecuting financial crimes. The reviewer adds their own analysis, particularly on the recent FTX cryptocurrency scandal, which is not covered in the book but fits well with its themes. Shorter summary

Scott Alexander analyzes prediction markets on Twitter, FTX, effective altruism, and US midterms, discussing their accuracy and exploring the concept of 'scandal markets'. Longer summary

Scott Alexander discusses recent prediction markets on Manifold and other platforms, focusing on topics like Twitter's future under Elon Musk, the FTX scandal and its impact on effective altruism, and the 2022 US midterm elections. He analyzes the accuracy of different prediction markets and polling aggregators, and explores the potential benefits and risks of 'scandal markets' for public figures. The post also touches on regulatory challenges for prediction markets and some interesting market observations. Shorter summary

Scott Alexander analyzes the potential role of psychopharmacology in the FTX crash, discussing medications used by SBF and others, and their possible effects on decision-making. Longer summary

Scott Alexander discusses the psychopharmacology aspects of the FTX crash, focusing on the medications Sam Bankman-Fried (SBF) and other FTX employees may have been taking. He examines claims about SBF's use of Emsam (selegiline), modafinil, and other stimulants, explaining their effects and potential risks. Scott also critiques the actions of FTX's company psychiatrist and discusses the broader implications of stimulant use in high-pressure work environments. The post ends with Scott's personal anecdote about testifying as an expert witness. Shorter summary