This bit of news about the upcoming collapse of Bank of America and CitiGroup as the global derivatives markets continues to collapse is making me recall every fatuous converation I ever had on the subject with idjits who never worry about global consequences through the simple expedient of reducing everything to one, one-time transaction between a willing buyer and a willing seller and extrapolating all the theoretical happy consequences from there. And lest I hear the usual efforts to blame "stupid borrowers," I must observe that the commercial real estate sector proved equally foolish about getting interest-only mortgages on the assumption that they could refinance when the value of the property rose.
I hope all you Leslie Fish fans are paying attention and have all your post-apocolypse song books ready, because utter financial collapse of national economies generally has very, very unpleasnat consequences for the social order. Which is the other thing that always offends the Libertarian set when I point it out. Ginsberg and his crowd may rail about how awful it was that the Supreme Court reversed Lochner and permitted the Federal government to go ahead with the new deal, but they seem indifferent to the fact that these changes are motivated from the specter of a far worse alternative. The mobs with pitchforks and torches are the ultimate check and balance on any political system. What has saved our coutry and our democracy more than once were leaders who understood that and engineered a course correction that gave a panicked people something to believe in.