Jay Michaelson surveys the Bible’s prohibitions against usury and call’s today’s financial regulation “nothing more than an update of the ancient prohibitions on usury, or the unfair charging of interest.”

Today’s derivatives market, for example, is precisely about “making money from money” — but taken to new and ludicrous extremes. The credit default swaps which were largely responsible for sinking insurance giant A.I.G. were essentially bets about whether certain debts would be paid or defaulted-upon. Now, as it happened, debtors defaulted in such numbers that they brought down the house. But this derivative security should never have been legal in the first place. It is a bet on making money from money; or rather, a bet on making money from lending money at a near-usurious rate of interest, and thus a usurious attempt to make money from making money from making money. As the Bible itself knew, bubbles pop.

The anti-usury value does not and should not depend on the percentage rate of interest. It is a wider prohibition, both ethical and prudential, against making money from money. Of course, it cannot be taken too literally, either; credit is what makes our economy run, as we have now learned the hard way. But in principle, anti-usury values are fundamental to the American experience, and more needed now than ever.

To ban or heavily regulate usurious derivative securities is not socialism. It is Christianity and Judaism.