Structure Matters: No More Complacency Around the Banking System

This week is sure to bring more questions than answers, and no one is complacent anymore. Plugging the holes in the dam may be the desired answer for many, but not the long-term solution. Arguably, capitalism requires dynamic moments, some failures, and unfortunately, sometimes feelings of chaos. Regulatory policies are not designed to guarantee a smooth ride for economic conditions. These policies cannot truly protect the integrity of the financial system and can even contribute to flaws in the system.   The fact is that as much as investors, employers, and employees want regulation to protect the overall financial system from vulnerability, sometimes hurricanes cannot be avoided (remember Jamie Dimon’s warning?). The question is: what do we do when we are faced with a hurricane? Hunker down and do nothing, or reposition for the rebound? Remember, capitalism remains the best system. Don’t believe me? Check out this article, “Ten Reasons Why Capitalism Is Morally Superior.”