Paul Volcker: How to Reform Our Financial System

My take: if it's "too big to fail" they need to create a "living will" to direct how to liquidate the company when it does fail. This avoids a sudden, unexpected shock to the system and any resulting dislocations.

In my mind it's debatable that something like that can be done practically, or that a "living will" would really work in practice. I am reminded of the "duck and cover" drills from my youth. Still, something needs to be done.

Fed pushes interest rates far below natural levels --> flood of easy credit into the hands of those who, regardless of work ethic, merit as human beings, etc., just can't afford it --> loans don't get paid back --> banks don't have the money they should --> credit flow halts entirely --> everything goes to shit