Markets: nearly free but hardly easy

Everyone knows money is not a panacea. Cash cannot cure broken hearts, and all that. But the news from Dubai and the foreign exchange markets shows that ample supplies of money can’t even solve all financial problems. Credit may still be tight for many borrowers, but the world’s governments and central banks are spreading around plentiful supplies of cheap funds. Policy interest rates are about as low as possible, and government deficits, which put additional cash into the financial system, are...