Regulation Overseas

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REGULATION OVERSEAS….Megan McArdle:

Europe’s ongoing disaster is starting to match ours. This not only seriously challenge the idea that the main problem is American bank regulation — everyone is having the same problem, despite different regulatory regimes — but also puts us in much deeper jeopardy.

Be careful here. Weak regulation, especially of the shadow banking system, may not be the only culprit in the credit crisis, but it is a culprit. And it’s a culprit in Europe as well as the U.S., as Henry Farrell points out:

European business leaders are now complaining that the EU isn’t regulating enough – that is, it isn’t engaging in coordinated action to stop its own financial markets from tanking. The reasons for EU inaction lie in the lack of any structures that would militate towards concerted action to address problems of market confidence, in large part because European financial markets are even less regulated than their US equivalents (as I’ve noted before the EU is typically more interested in liberalizing markets than restraining them, contrary to the general impression in the US).

The problems in the European banking system are pretty similar to the problems in the U.S.: too much leverage, too much credulity about the housing market, and too much manic buying and selling of opaque and complex financial derivatives. Like the U.S., the EU could have saved itself at least part of its current pain if it had adopted a more sensible regulatory scheme. But like the U.S., they didn’t.

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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