"Bernanke cited "the depth and sophistication of the country's financial markets (which, among other things, have allowed households easy access to housing wealth)." Depth, yes. But sophistication? Well, you could say that American bankers, empowered by a quarter-century of deregulatory zeal, led the world in finding sophisticated ways to enrich themselves by hiding risk and fooling investors.

"And wide-open, loosely regulated financial systems characterized many of the other recipients of large capital inflows. This may explain the almost eerie correlation between conservative praise two or three years ago and economic disaster today. "Reforms have made Iceland a Nordic tiger," declared a paper from the Cato Institute. "How Ireland Became the Celtic Tiger" was the title of one Heritage Foundation article; "The Estonian Economic Miracle" was the title of another. All three nations are in deep crisis now."

Now who traditionally favors "wide-open, loosely regulated financial systems"? Track that down and I'll bet the blame for this mess could be laid at their feet. If they weren't so busy tap-dancing, back-pedalling and finger-pointing as to be contorted beyond recognition.

Arf