The financial markets are in turmoil. Inflation is picking up. Home prices are falling. More and more companies are laying off workers. Oil prices are sky-high. It’s getting harder and harder to borrow money. It seems like a nest of conspirators is preying on America. Even Washington is reinforcing the impression with talk of sweeping reforms to the system of economic oversight, including proposals to consolidate some regulatory agencies and dramatically expand the authority of the Federal Reserve.It looks like Congress and the White House now realize the regulators were asleep at the wheel. Indeed, Ben Stein, a well-known economic commentator, has promoted the notion of market manipulation by hedge funds.…