Elizabeth Warren certainly has some good ideas, but the fiasco the CFPB has become is largely on her. She created a bureaucracy that was to be immune to political pressure by design, under the shortsighted assumption that she (or at least someone amenable to her) would run it. People warned her and she should have known better.

The way to avoid the next crisis is to stop bailing out the players. The role of the Fed should be ensure that the payment system remains robust and that solvent banks have access to liquidity.

Lehman Brothers should be a model for the future. Barclays and Nomura bought productive the assets of Lehman and put them to work. The investors in Lehman's poor management were punished.

On the other hand, AIG/Goldman bailout earned Warren Buffet alone about $5 billion dollars. He literally was buying Goldman preferred stock while advising the Treasury to bailout AIG (whose biggest counterparty was GS).