Enlightenment Tunnels Through Opaque WaPo

{link » Paulson's Moment Of Truth}

“The longer the financial turbulence goes on, the greater the likely backlash against U.S.-style financial globalization. But Paulson's gamble -- if it succeeds -- could limit the damage. By refusing to use the Fed's balance sheet to bail out Lehman, he may have saved the Fed from becoming further bogged down in its crisis-management role, freeing it to focus more on preserving the value of the dollar. And by repealing the too-entangled doctrine, Paulson may have strengthened market penalties for banks that mismanage modern financial instruments -- thereby increasing the chances that sophisticated, market-based finance can flourish safely.

Shocking though it may sound now, there is much to like in U.S.-style financial globalization. America's critics may be tempted to celebrate the dollar's dethronement, but ordinary savers from Brazil to Belarus are grateful for an international store of value. The critics may say that the newfangled financial instruments are inherently dangerous, but this is only true when they are combined with excessive borrowing. The challenge over the next year or so is to preserve the good parts of the system while embracing necessary change. Paulson's willingness to throw the dice has made the world hold its breath, but it shows that he knows what the stakes are.” — Sebastian Mallaby

Sounds like Mallaby sees "Paulson's Moment Of Truth" as an instance of National accountability. If only Treasury's example would trickle down to the consumers-without-borders level, some lasting progress towards personal accountability could ... Nah.

1080p? Don't know what it is, but I want it. Charge!