Morning Must-Read: John Aziz: Stopping the Next Financial Crash Is Impossible

John Aziz: Why stopping the next financial crash is an impossible dream:

Are financial crashes really preventable? I don’t think so. The world is just too unpredictable…. [And] as… Hyman Minsky put it, stability is destabilizing…. How do people react to a stable world?… They become more tolerant of risk…. Successful regulations [thus] became victims of their own success…. We need to move beyond the impossible dream of preventing financial crises before they occur. Laws to prevent theft, fraud, intentionally misleading investors, and gambling with other people’s money or with an implicit guarantee (like Glass-Steagall) are prudent…. But booms and busts are normal behavior in markets, because the future is so hard to predict and people are so unpredictable…