Extend the Regulatory Umbrella

My opening entry in the Blog Wars at CBS Marketwatch.com:

    We Need to Extend the Regulatory Umbrella.

[This was written before Paul Krugman's Making Banking Boring, which makes similar points. Also, last week Tyler Cowen and Brad DeLong discussed fiscal policy - see here.]

Update: Here is Houman Shadab's response:

    Regulate the Relationships, Not the Institutions and Instruments

I have a counter response, and a proposal for regulating systemic risk, that will appear tomorrow.