Pretty sure that's a feature, not a bug
It's not uncommon for incompetent people to be put in positions of power. Because they are incompetent, competent but malicious people take advantage of this and commit actual crimes.
This is where actual conspiracies show up. And that is the incompetent powerful people cover up said crime to avoid looking incompetent.
It is an extremely common pattern.
DT has had a long history of operating like a mafia boss where the design of the people he chooses around him is to put scapegoats on when the criminal activities he's involved in is caught.
It's sycophancy plain and simple. Surround yourself with only yes-men, it ends up becoming less and less competent as the ones who stand up and say no are replaced.
Even if they know better, they can't do better because they know there is no loyalty to nay-sayers.
It's the "market can remain irrational..." problem.
It's yet another broken feedback loop.