Reply #98: Despite Obama's rhetoric, financial crises cannot be completely prevented.

[BzaDem]

The resolution authority/systemic risk council/derivative regulation regime should do a lot to minimize the chances of another one like the one in '08. If (when?) there is another financial crisis in the future, it will likely be very different than the one in '08, since this bill closes a lot of the holes that allowed the one in '08 to happen.

If you actually wanted to prevent all financial crises, you would ban risk taking. Of course, that would also end capitalism. Which many people here would have no problem with.

A better bill certainly would have included provisions to break up the big banks. But this would only have minimized financial crises that were borne out of a single large entity failing. It is easily possible to have a financial crisis that affects many small banks (a systemic crisis) as opposed to one or two big banks. This is what happened in the great depression. It is further unclear whether having broken-up banks before 08 would have even prevented THIS financial crisis.

Just because a bill could be made better doesn't mean it is crap.