Roberts and Kling on the Crisis

[Comment removed pending confirmation of email address. Email the webmaster@econlib.org to request restoring this comment. A valid email address is required to post comments on EconLog.--Econlib Ed.]

Excellent summary in the Harvard Journal. Not much to add except to state the obvious that politicians will always favor the cartoon version of moral failure. Moral failure is a constant. Regulatory loopholes ("arbitrage") need not be---at least when combined with policy. They can never be eliminated fully, but can be mitigated. One way is to let institutions fail. But that's old news.