All of this seems like a pretty stinging rejoinder to the notion that the problem is simply a failure of regulatory stringence. The problems have spread across regulatory regimes, currencies, and banking systems; besides Canada, not a single large economy has escaped. Perhaps the problem is Basel II--having a unified standard may have left us more vulnerable. But there's something here deeper and more frightening than a lack of adequate rules.
Nobody is saying the problem "is simply a failure of reguatory stringence." It's a failure with multiple sources, including and especially lack of regulation. Not just stringence--actual existance of any regulation of the shadow financial system. It's a stupid strawman argument, like so many others of Megan's, and why her words cannot be trusted. You never know if she speaks out of training and knowledge or out of ideology. Some pundits like Jonah Goldberg always slip in ideological nonsense because that is their job, but McArdle is supposed to be more independent than a National Review lackey and bootlicker. Of course she is not, and she's too poor of a writer to disguise it.
While defending Alan Greenspan Megan states:
The alternative question for the liberals: if regulation is so great, how come one guy, or one fairly minor bill, can apparently single-handedly destroy the most heavily regulated industry in America that doesn't actively involve radioactive material? If your preferred system is really that fragile, then maybe we should be looking into alternatives.Again, nobody says one thing caused the crash. Unless McArdle can back up accusations with facts she can't be taken seriously. To continue her theme, McArdle calls corruption at the Long Island Rail Road "Regulatory capture at its finest," criticizes "social spending" in Venezuela. She also lowers herself to say that Naomi Klein is an idiot and Matt Taibbi is ignorant. Such personal attacks make her look very petty and self-indulgent, and McArdle might want to take care that she doesn't wander further into Ann Althouse territory.
Her output is impressive in quantity, if not in quality. She seems to have spontaneously decided that the mere fourteen posts she made last week were an insufficient output.