To paraphrase J. K. Galbraith, at any given time there exists an inventory of undiscovered regulatory fraud in the economy, and this inventory is part of the
bezzle.[a] In good times regulators are relaxed and trusting, and their approval is easier to obtain. Under these circumstances the rate of regulatory fraud grows, the rate of discovery falls off, and the regulatory bezzle increases rapidly. In bad times all this is reversed. Actions are watched with a narrow, suspicious eye. Regulators assume everyone is dishonest until proven otherwise. Regulatory audits are penetrating and meticulous. Commercial morality is enormously improved. The regulatory bezzle shrinks.
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[a] The term "bezzle" was proposed by J. K. Galbraith in The Great Crash of 1929: "To the economist embezzlement is the most interesting of crimes. Alone among the various forms of larceny it has a time parameter. Weeks, months or years may elapse between the commission of the crime and its discovery. (This is a period, incidentally, when the embezzler has his gain and the man who has been embezzled, oddly enough, feels no loss. There is a net increase in psychic wealth.) At any given time there exists an inventory of undiscovered embezzlement in – or more precisely not in – the country’s business and banks. This inventory – it should perhaps be called the bezzle – amounts at any moment to many millions of dollars. It also varies in size with the business cycle. In good times people are relaxed, trusting, and money is plentiful. But even though money is plentiful, there are always many people who need more. Under these circumstances the rate of embezzlement grows, the rate of discovery falls off, and the bezzle increases rapidly. In depression all this is reversed. Money is watched with a narrow, suspicious eye. The man who handles it is assumed to be dishonest until he proves himself otherwise. Audits are penetrating and meticulous. Commercial morality is enormously improved. The bezzle shrinks." (https://www.goodreads.com/work/quotes/1466583-the-great-cras...)