I grew up at Los Alamos National Labs so I've known plenty an experimental physicist. We're all on the same page about this.
It's hilarious, however, that you point at Black-Scholes, considering where Myron Scholes ended up.
Some industry officials said that Federal Reserve Bank of New York involvement in the rescue, however benign, would encourage large financial institutions to assume more risk, in the belief that the Federal Reserve would intervene on their behalf in the event of trouble. Federal Reserve Bank of New York actions raised concerns among some market observers that it could create moral hazard since even though the Fed had not directly injected capital, its use of moral suasion to encourage creditor involvement emphasized its interest in supporting the financial system.
Arrogant economists indeed.