As The Markets Dip

Joe Klein gets it:

When presented fairly, with nuance, the bankers have an argument that needs to be taken seriously: when it comes to actual goods and services--which hybrid automobile engine is best--the market is inevitably a better judge of quality than the government. But untrammeled markets, in which Ponzi products are traded back and forth, need to be policed and eliminated--and the government has an important, and necessarily intrusive, role in channeling us back toward a rock-solid foundation and away from the flim-flam that is choking us. That is where we stand now. That is what the bankers refuse to acknowledge, but it is what the public voted for last November.

Wall St. doesn't appear to have picked up on this yet. But I do think that when recovery begins, Obama's reform of the banking system may be his most important domestic legacy - and he'll be judged centrally on it.