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March 16, 2008


Brendan's recitation of Democratic talking points is, if nothing else, faithful. However, one particularly hyperbolic statement demands comment: "The financial system is in near-collapse."

Hardly. The U.S. financial system is very large, diverse and resilient. The stock market may have its ups and downs (When asked what the stock market would do, J.P. Morgan replied, "It will fluctuate."), the subprime mortgage market may largely disappear, the shareholders of Bear Stearns may lose most of their investment, a recession may hurt many companies' sales and earnings and force many restructurings, but the financial system as a whole remains very solid. "In near collapse"? Preposterous.

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