Indeed, due diligence is inherently not scalable. The world of finance has done everything in its power to overcome this constraint—basically all forms of risk

Indeed, due diligence is inherently not scalable. The world of finance has done everything in its power to overcome this constraint—basically all forms of risk pooling—but if nobody actually does the due diligence then you get stuff like NINJA mortgages repackaged into CDOs with AAA ratings on the senior tranche.