Arnold had a nice letter to the editor in Saturdays Washington Post, making his very wise point that each round of financial regulation is a reaction to the causes of the latest crisis and thereby helps spawn the next crisis.
Above his letter was this one
A formula is emerging from this economic crisis. If a corporation
succeeds, through market expansion or acquisition of complementary or
competing businesses, it becomes "too big to fail," thereby achieving
every free-market advocate's dream of paradise. The taxpayers, aka the
U.S. government, underwrite the risk, and the corporation banks the
Simple, right? Why did it take so long to figure this out?
It's an interesting definition of "free-market advocate." A free-market advocate evidently wants the government to be actively involved in bailing out big losers. Why would the Washington Post think this merits publishing. Evidently, some of the editors there also believe that free market advocates are in favor of government intervention. Bizarre.