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KAZAKHSTAN-ONOMICS….Felix Salmon on our brave new world:

The “shadow banking system” is now so big and so global that for all we know a series of bad decisions by a mid-level technocrat in Kazakhstan could precipitate cataclysm across America and the world.

That’s true, but only if the financial system is fundamentally unbalanced to begin with — and it’s the job of governments and central banks to regulate the financial system to keep that from happening. They don’t regulate in order to produce the results they want, or to prevent people from making money, but to keep the financial system within at least the very broad boundaries of basic stability.

Alternatively, you can let the unfettered market have its way and then clean up the messes afterward. This is pretty orthodox Republican thinking, shared by Hoover in 1930, Reagan and Bush during the S&L crisis, and now Alan Greenspan and George Bush during the housing bubble. This ends up hurting lots of little guys, of course, but the irony is that it ends up hurting lots of big guys too. Frankly, they’d do better — in fact, they do do better — with Democrats running the show. They never really seem to figure that out, though.

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We've never been very good at being conservative.

And usually, that serves us well in doing the ambitious, hard-hitting journalism that you turn to Mother Jones for. But it also means we can't afford to come up short when it comes to scratching together the funds it takes to keep our team firing on all cylinders, and the truth is, we finished our budgeting cycle on June 30 about $100,000 short of our online goal.

This is no time to come up short. It's time to fight like hell, as our namesake would tell us to do, for a democracy where minority rule cannot impose an extreme agenda, where facts matter, and where accountability has a chance at the polls and in the press. If you value our reporting and you can right now, please help us dig out of the $100,000 hole we're starting our new budgeting cycle in with an always-needed and always-appreciated donation today.

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