Should we choose a robust financial system or leverage-fueled economic growth?
Financial regulation is one of the bogeymen that have spooked asset markets over the past month. The SEC's case against Goldman Sachs has revitalized the regulatory reform dialogue and renewed concerns of earnings volatility and valuations.  The outcome is of little consequence now that Goldman Sachs ( GS - news - people ), and other large banks, by association, has been publicly vilified. The case has demonstrated the logic behind Glass-Steagall, calling into question the remit and obligations of entities that operate under the protection of implicit federal assistance The Volcker rule aims to unbundle highly risky activities from the institutions we entrust with our savings by pulling the shadow banking system under the scrutiny of regulation. However, it could fall victim to "soft-touch" habits by allowing financial institutions control of its interpretation.

There is a growing consensus among Latin American diplomats that new political winds are blowing in the region -- after a decade of radical leftist populism, we are entering a new era of centrist pragmatism. Are such forecasts right? Let's look at the evidence.  There is no question that Venezuela's narcissist-Leninist president Hugo Chávez, who was Latin America's center of attention during the past 10 years, is rapidly losing his clout as a regional leader.

Colombia Green Party candidate Antanas Mockus’ lead over former Defense Minister Juan Manuel Santos has narrowed less than three weeks before the country’s presidential vote, a survey by Datexco Company SA showed. Mockus would beat Santos of the La U Party by 32.8 percent to 29.3 percent in the first-round vote and would win a second- round runoff with 47.9 percent of the ballots to 33.6 percent for Santos, according to the poll broadcast today on W Radio. The company’s poll last week had shown Mockus with a 12- point advantage in first-round elections and an almost 22-point lead in the second round. A Centro Nacional de Consultoria poll published last night showed Santos with a slender lead in first- round voting and had the candidates in a statistical dead heat in the second round. A candidate needs more than 50 percent of the first-round vote on May 30 to avoid a June 20 runoff.

There is a growing consensus among Latin American diplomats that new political winds are blowing in the region -- after a decade of radical leftist populism, we are entering a new era of centrist pragmatism.
Are such forecasts right? Let's look at the evidence.
There is no question that Venezuela's narcissist-Leninist president Hugo Chávez, who was Latin America's center of attention during the past 10 years, is rapidly losing his clout as a regional leader.