Just a quicky on the Turner report. The footnotes to the 'fundamental theoretical issues' section actually provide a pretty good reading list for understanding why things may have gone wrong. Many of them are quite easy reading (I found Stablising an Unstable Economy required quite a bit of concentration, but maybe that's just me), which means that it shouldn't be too much of a challenge for any interested lefties to get up to speed pretty quickly. And obviously I think more of us ought to be doing this.
Here's the list -
John Maynard Keynes - General Theory (1936).
Hyman Minsky - Stabilising an Unstable Economy (1986).
Charles Kindelberger - Manias, panics and markets (1978).
Robert Shiller - Irrational Exuberance (2000)
An institutional theory of momentum and reversal - Vayanos and Woolley LSE, (November 2008).
George Soros - The new paradigm for financial markets (2008)
Kahneman, Slovic and Tversky - Judgment under uncertainty: heuristics and bias(1982)
The Great Contraction in Friedman and Schwartz - A monetary history of the United States 1867-1960 (1963).
Benoit Mandelbrot - The Misbehaviour of Markets(2004)
Nassim Nicholas Taleb - The Black Swan: the Impact of the Highly Improbable (2007)
Andrew Haldane - Why banks failed the stress test (February 2009)
Frank Knight - Risk, Uncertainty,and Profit (1921)
Adair Turner - Uncertainty and Risk: reflections on a turbulent year
Daniel Tarullo - Banking on Basel (2008)