Foolestroupe - Yes, I see what you mean, but the concept of "local" could be extended to include the mixing of traditional securities.

             For instance, the sub-prime mortgage situation would probably have been confined to the fringe lenders and borrowers who were engaged in the practice. However, by allowing institutions to "bundle" all of the mortages into packages and then sell them as a whole, the few sub-prime loans contaminated the entire package.
             Now a number of institutional buyers are afraid to touch any part of it. It's like a virus, and it's contageous.

             I don't seen how the president's proposals do anything at all to fix the problem either. If somebody is drowning in debt, what are they going to do with a "tax break?"