<Ol> <Li> Fraud matters, and control frauds pose unique risks . </Li> <Li> It is important to understand fraud mechanisms . Economists grossly underestimate its prevalence and impact, and prosecutors have difficulties finding it, even without the political pressure from politicians who receive campaign contributions from the banking industry . </Li> <Li> Control fraud can occur in waves created by poorly designed deregulation that creates a criminogenic environment . </Li> <Li> Waves of control fraud cause immense damage . </Li> <Li> Control frauds convert conventional restraints on abuse into aids to fraud . </Li> <Li> Conflicts of interest matter . </Li> <Li> Deposit insurance was not essential to S&L control frauds . </Li> <Li> There are not enough trained investigators in the regulatory agencies to protect against control frauds . </Li> <Li> Regulatory and presidential leadership is important . </Li> <Li> Ethics and social forces are restraints on fraud and abuse . </Li> <Li> Deregulation matters and assets matter . </Li> <Li> The SEC should have a chief criminologist . </Li> <Li> Control frauds defeat corporate governance protections and reforms . </Li> <Li> Stock options increase looting by control frauds . </Li> <Li> The "reinventing government" movement should deal effectively with control frauds . </Li> </Ol> <Li> Fraud matters, and control frauds pose unique risks . </Li> <Li> It is important to understand fraud mechanisms . Economists grossly underestimate its prevalence and impact, and prosecutors have difficulties finding it, even without the political pressure from politicians who receive campaign contributions from the banking industry . </Li> <Li> Control fraud can occur in waves created by poorly designed deregulation that creates a criminogenic environment . </Li>

When the home construction industry does poorly due to a recession this is an example of