This editorial will appear in tomorrow’s print edition.
Start with the obvious: Some mysterious gremlin in some murky nook of America’s trading system should not be able to trigger the steepest sell-off in Wall Street history.
For that matter, a small Mediterranean country’s bad debts should not be able to threaten the European economy and spook investors around the world.
And while we’re on the subject, incomprehensible financial products based on fraudulent mortgage schemes should not be able to throw the world into a near-catastrophic credit crisis, as happened in 2008.
Republicans in Congress are attempting a last stand against a Democratic package of sweeping new regulations on financial markets and institutions. The Republicans make the usual points – some of them valid – about the virtues of free markets and the burdens of government restriction. But they’re shouting into a gale.
Americans have seen hundreds of billions of their dollars used to bail out enormous banks, and they aren’t in a mood to let the markets regulate themselves.
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