Fixing Big Finance : The real solutions for financial-industry failure.

The credit crisis and the resulting recession are the work of an invisible hand - not the invisible hand of free markets but of an overwhelming government interference in those markets. Over a quarter of a century, Washington gave the world of finance a terrible privilege: freedom from fear of failure. Until the early 1980s, banks, securities firms and insurers, like all private companies, operated under market discipline. Federal laws prescribed a consistent, predictable way in which they could fail, with investors and lenders taking their warranted losses.