The US has been a leader in financial markets for quite a while now. Unfortunately, as anyone interested in international business knows, that may well be changing considerably. Why? Well, necessary deregulation combined with some archaic laws which remained led to a veritable regulation-phobia, and most everybody involved was making too much money to care. The result? That lack of oversight led to excessive risk taking by entities which were either implicitly government-backed or which, as it turns out, were simply “too large to fail.” That, and many Americans are sitting on properties which aren’t likely to be worth what they paid for them for quite a long time.

Now, that lack of oversight looks to beget yet another. As taxgirl reports on her blog, current proposals would give Treasury Secretary Paulson a $7000 billion blank check, with no congressional or judicial oversight whatsoever. Given the actions the executive branch has taken with oversight during the course of this administration, I’m somewhat skeptical that the money will be spent wisely or effectively.

If you’re in the US I urge you to read it and act, before it’s too late. Those of you abroad, many of whose financial markets are interdependent with ours, just hope we get this right the first time.

According to the Financial Times, the UK now vies with the US for most developed financial market, with New York narrowly retaining its lead over London as a financial market.

It’s the UK’s second bite at the apple, having been the most important financial center through much of the 1800s.